On the General Anti-Avoidance Rules, proposed in Budget, the minister said he would respond on the issue in Parliament
New Delhi: Finance Minister Pranab Mukherjee today said government may clarify its stand on Vodafone tax controversy in Parliament at the time of discussion on Finance Bill, 2012.
"I cannot respond to any speculative questions. Parliament is in session. If anything is to be clarified, I will (do it) only at Parliament at the time of Finance Bill," he told reporters.
He was responding to queries on whether the government would waive penalty on Vodafone, which may have to pay tax after Parliament approves amendments to Income-tax, 1961, with retrospective effect.
Parliament is scheduled to take up the Finance Bill, which contains tax proposals, next week. The Bill was introduced by Mukherjee in Parliament on 16th March.
On the General Anti-Avoidance Rules, proposed in Budget, the minister said he would respond on the issue in Parliament.
Vodafone Group CEO Vittorio Colao had called on Finance Minister Pranab Mukherjee on Tuesday to discuss issues concerning India's decision to amend the Income Tax Act with retrospective effect and its possible impact on the Rs 11,000 crore tax demand.
The Nifty may fall to the level of 5,150
Concerns about the domestic economy and a weak rupee led the market down for the second day in a row. Yesterday we had mentioned that if the Nifty closes below 5,220 we may see the index slipping to the level of 5,155. The losses in the past two days have completely wiped off the gains made between 27 April and 30 April. Today’s fall was supported by a volume of 55.35 crore shares on the National Stock Exchange (NSE). We may now see the index falling to the level of 5,150.
The market witnessed a gap down opening in the absence of any domestic triggers and a disappointing US jobs report for the month of April. The ADP report revealed that private employers added 119,000 jobs in April, far below what analysts expected. The development is likely to have a bearing on the monthly payroll data, due to be released on Friday. This and the contraction of the Eurozone factory output for April weighed on the Asian markets in morning trade today. The Nifty resumed trade down 28 points lower at 5,211 and the Sensex opened trade at 17,272, a cut of 30 points from its previous close.
While the opening figure of the Sensex was its intraday high, the Nifty hit its high a short while later at 5,217. The benchmarks moved in a narrow range in the negative terrain amid volatile trade till the noon session.
A warning from global financial major Morgan Stanley that India is likely to end the fiscal 2012-13 with a ‘record’ current account deficit and a weak rupee that hit its fresh four-month low, weighed on the investors.
The market fell to its intraday low in post-noon trade with the Nifty going back to 5,181 and the Sensex dropping to 17,121. The benchmarks settled close to the lows. The Nifty finished 51 points down at 5,188 and the Sensex tanked 151 points to finish trade at 17,151.
The advance-decline ratio on the NSE was 530:1263.
The broader indices underperformed the Sensex today; the BSE Mid-cap index declined 1.02% and the BSE Small-cap index dropped 1%.
BSE IT (up 0.71%) and BSE TECk (up 0.37%) were the only gainers in the sectoral space. The losers were led by BSE Auto (down 2.43%); BSE Metal (down 1.75%); BSE Bankex (down 1.74%); BSE PSU (down 1.45%) and BSE Realty (down 1.43%).
Hindustan Unilever (up 2.02%); Wipro (up 1.93%); TCS (up 1%); BHEL (up 0.60%) and Infosys (up 0.53%) were the top gainers on the Sensex. The top losers were Hero MotoCorp (down 7.69%); Maruti Suzuki (down 3.06%); Tata Steel (down 3%); ICICI Bank (down 2.74%) and State Bank of India (down 2.54%).
The Nifty toppers were Asian Paints (up 2.70%); Hindustan Unilever (up 2.35%); Wipro (up 2.07%); BPCL (up 0.90%) and TCS (up 0.77%). The main laggards were Hero MotoCorp (down 7.88%); Axis Bank (down 3.92%); Bank of Baroda (down 3.26%); IDFC (down 2.93%) and Punjab National Bank (down 2.92%).
Markets in Asia closed mixed on dismal economic data from the US and Europe on Wednesday raised fresh concerns about the pace of global growth. Focus is now on the outcome of the ECB meeting, which is likely to keep rates unchanged.
The Shanghai Composite added 0.07%; the Jakarta Composite rose 0.11%; the KLSE Composite was up 0.05% and the Nikkei 225 gained 0.31%. Among the losers, the Hang Seng fell by 0.28%; the Straits Times slipped 0.17%; the KOSPI Composite declined 0.20% and the Taiwan Weighted lost 0.23%. At the time of writing, the key European indices were up in the range of 0.59% to 1.17% and the US stock futures were in the positive.
Back home, institutional investors—both foreign and domestic—were net buyers in the equities segment on Wednesday. While foreign institutional investors infused Rs237.47 crore, domestic institutional investors pumped in Rs71.12 crore.
Luggage maker VIP Industries said it has incorporated a wholly-owned subsidiary—VIP Industries Bangladesh Pvt Ltd—in Bangladesh to set up a luggage manufacturing plant. The company, however, did not share any financial details. VIP tumbled 7.26% to close at Rs86.25 on the NSE.
Infosys, a global leader in consulting and technology, and Ratnakar Bank, a major player in private sector banking, have announced a strategic partnership for the bank’s universal banking platform. As per the agreement, Infosys will implement Finacle core banking solution to support Ratnakar Bank’s objective of client-centricity, product innovation and scalability for future growth. Infosys gained 0.49% to close at Rs2,484 on the NSE.
Man Industries (India) has repurchased Zero Coupon Foreign Currency Convertible Bonds (FCCBs) worth $0.2 million of face value, listed on the Singapore Exchange Securities Trading, at discount in accordance with permission from the Reserve Bank of India. The cancellation & extinguishment of the same will be done as per the terms of the Offering Circular. The stock closed at Rs97.60 on the NSE, down 0.96%.
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