Indian shares ended lower for a third straight session on Thursday, after the government's 2018/19 budget set a capital gains tax on long-term equity investments, although investors welcomed higher spending in key areas of the economy such as agriculture. The broader NSE index ended 0.1 percent down to 11,016.90 in a volatile session where shares briefly plunged 1.35 percent and gained up to 0.81 percent.
The benchmark BSE index closed 0.16 percent lower at 35,906.66. Bonds were range-bound, with the benchmark 10-year bond yield flat at 7.43 percent. The rupee weakened to 63.6650 from its 63.58 close on Wednesday, tracking a stronger dollar after the US Federal Reserve signalled its confidence about inflation and growth in the world's biggest economy.
Investors in India are keenly waiting to see how much India widens its fiscal deficit for the year starting in April, from the current projection of 3.0 percent of gross domestic product. A Reuters poll showed most economists expect a 3.2 percent deficit as the government looks to increase investments in key areas such as agriculture to bolster its prospects in upcoming elections.
The gains were led by index heavyweight Larsen & Toubro Ltd, which rose as much as 3.6 percent to an all-time high on strong results for the quarter ended December.
Comments
Comments are closed for this article.