Indian share prices fell 0.58 percent on Monday in cautious and choppy trade following a government note on tax from share sales for overseas funds and local institutions, dealers said. They said this raised concerns of higher tax liabilities while funds sold stock to remain largely in cash, ahead of a record initial share sale from India's largest private sector ICICI Bank which opens for subscription on Tuesday.
The 30-share Sensex index fell 82.57 points to 14080.14. ICICI Bank will sell shares in India and the US to raise as much as 175 billion rupees (4.3 billion dollars), it said last week.
"Market sentiment remained cautious due to the tax note. With several IPOs set to hit the markets, the focus could shift towards the primary markets," said a dealer with brokerage Jamnadas Morarjee. The government tax note, which was issued on Friday, related to tax calculations from share earnings and prompted concerns of higher tax liabilities.
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