Indian equity markets extended their downtrend for second straight session, lacking any significant upside triggers that kept the investors uninterested ahead of the weekend. The major disappointment in the session remained index heavyweight Reliance Industries as it failed to surprise the marketmen who had built a lot of expectations around the company's annual general meeting anticipating some big announcements by Chairman Mukesh Ambani. After trading with gains of around one and half a percent before the AGM, the stock settled with over one and half a percent loss as marketmen showed a knee-jerk reaction to reports that RIL has shelved plans to enter power sector. The frontline indices too drifted into the red terrain in tandem with RIL as investors indulged only in stock specific activities amid thin trading volumes. Leads from markets across the globe too remained subdued as the Asian equity indices exhibited mixed trends while the European counterparts traded in an extremely tight range with a positive bias. Back home, the NSE's 50-share broadly followed index Nifty, shaved off another around half a percent point and settled just above the crucial 5,500 support level while Bombay Stock Exchange's Sensitive Index, Sensex took another hundred point blow and closed below the psychological 18,400 mark. By the end of trade, the broader markets which showed some resilience for most part of the session slipped into the negative region but outclassed their larger peers comfortably. The midcap index eased 0.34% while the smallcap index shed with 0.05%. On the sectoral front, the Oil and Gas stocks languished at the bottom of the table with 1.34% losses after majors like RIL and ONGC deposed 1.64%, and 0.44% respectively. The Metal pocket too witnessed hefty bouts of profit booking and slipped by 1.05% after majors like Hindalco and Jindal Steel sank by 2.55% and 1.57% respectively. On the other hand only Capital Goods and Consumer Durables counters managed to shut shops in the green terrain as bellwethers like L&T and Rajesh Exports surged by 2.18% and 2.13% by the end of trade. The fact that Anil Ambani won't be directly involved, came as a big relief for all ADA group stocks which sharply rallied on the back of short-coverings with RCom and RInfra surging 3.95% and 0.85% respectively.
On the global front, Asian equity indices settled on a mixed note as investors in the region remained on the sidelines ahead of US jobs report. The Hong Kong Shares remained top laggard in the session after plunging by over one and a quarter percent points. The European equities too traded on a positive note as France's CAC gained 0.15%, and Germany's DAX added 0.14% and London's FTSE 100 rose 0.20%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to a sanguine opening shrugging weak leads from the Asian stock markets that largely remained influenced by the overnight Wall Street which settled on a sluggish note on the back of weaker than expected sales reports from retailers and another rise in claims for unemployment benefits. Soon after the positive opening the frontline indices went on to test the psychological 5,600 and 18,650 levels but lack of support at higher levels pulled the indices to lower levels. Thereafter, the benchmarks sank into the red terrain as RIL annual general meeting turned out to be a low key affair, not giving out any notable upside triggers to the markets. The bourses continued to tread under the water throughout the session thereon as investors appeared reluctant to pile up long positions amid the growing uncertainties and challenging macro-economic backdrop that prevailed in the local markets. Eventually the key indices snapped yet another session with losses of over half a percent and settle around psychological 5,500 and 18,400 levels. Market breadth remained negative as there were 1306 shares on the gaining side against 1485 shares on the losing side while 141 shares remained unchanged.
Finally, the BSE Sensex declined by 117.70 points or 0.64% to settle at 18,376.48 while the S&P CNX Nifty slipped 33.60 points or 0.61% to settle at 5,516.75.
The BSE Sensex touched a high and a low of 18,672.65 and 18,345.85, respectively. The BSE Mid cap and Small cap index were down by 0.34% and 0.05% respectively.
The top gainers on the Sensex were Reliance Communication up 3.95%, L&T up 2.18%, Mahindra & Mahindra up 0.96%, Reliance Infrastructure up 0.85% and Maruti Suzuki up 0.82%.
On the flip side, HDFC down 2.99%, Hindalco Industries down 2.55%, Jaiprakash Associate down 2.36%, Tata Motors down 2.29% and Reliance Industries down 1.65% were the top losers on the index.
Meanwhile, India, which already has comprehensive Double Taxation Avoidance Agreements (DTAA) with around 80 countries, has notified the DTAA with the Government of Mozambique for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on May 31, 2011.
Double taxation is the imposition of two or more taxes on the same income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes). Such double tax liabilities are mitigated by tax treaties like DTAA between countries.
Besides facilitating economic cooperation, the DTAA between India and Mozambique provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state. Examples of permanent establishment include a branch, factory, office, place of management, etc. Profits of a construction, assembly or installation projects will be taxed in the state of source if the project continues in that state for more than 12 months, according to the official statement issued by the finance ministry.
Under the agreement, the profits derived by an enterprise from the operation of ships or aircraft in international traffic shall be taxable in the country of residence of the enterprise. Moreover, dividends, interest and royalties income will be taxed both in the country of residence and in the country of source. However, the maximum rate of tax to be charged in the country of source will not exceed 7.5% in the case of dividends and 10% in the case of interest and royalties. Capital gains from the sale of shares will be taxable in the country of source, the release stated.
According to the statement, the nations will also engage in effective exchange of information and assistance in collection of taxes between tax authorities of the two countries in line with internationally accepted standards including exchange of banking information and incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of by the genuine residents of the two countries.
The pact will also provide tax stability to the residents of India and Mozambique and facilitate mutual economic cooperation, besides stimulating the flow of investment, technology and services between India and Mozambique.
The only gainers on the BSE sectoral space were Capital Goods (CG) up 0.75% and Consumer Durables (CD) up 0.46%.
The top losers in the BSE sectoral space were and Oil & Gas down 1.34%, Metal down 1.05%, Public Sector Unit (PSU) down 1.03%, Health Care down 0.94% and FMCG down 0.77%.
The S&P CNX Nifty touched high and low of 5,604.95 and 5,507.20, respectively.
The top gainers of the Nifty were Reliance Communication up 4.50%, L&T up 2.53%, Reliance Capital up 2.51%, Sesa Goa up 2.17% and Powergrid up 1.96%.
On the flip side, HDFC down 3.07%, Axis Bank down 2.41%, SAIL down 2.28%, Tata Motors down 2.25% and Hindalco down 2.16% were the major losers on the index.
European markets were trading in mix. France's CAC 40 down by 0.20%, Britain's FTSE 100 up 0.04%, and Germany's DAX rose by 0.27%.
Asian equity indices finished the day's trade on a mixed note on the last trading day of the week as investors in the region remained on the safer side ahead of US jobs report. Japanese shares closed with a cut of over half a percent amid caution before key US jobs data and amid ongoing political uncertainty in Japan while, Seoul shares edged marginally lower, with falls in technology stocks like LG Electronics weighing, but modest foreign investor buying and firm gains in shipyards gave some support to the market. However, Chinese benchmark rebounded from a four-month low and snapped the day's trade with a gain of over 0.80 percent as market players scooped up beaten-down shares, in particular those of industrial companies while, Taiwan stocks rose more than half a percent on Friday, led by smartphone maker HTC amid optimism it is among the few companies in the tech industry that have bright prospects this year.
On the global front, Asian equity indices settled on a mixed note as investors in the region remained on the sidelines ahead of US jobs report. The Hong Kong Shares remained top laggard in the session after plunging by over one and a quarter percent points. The European equities too traded on a positive note as France's CAC gained 0.15%, and Germany's DAX added 0.14% and London's FTSE 100 rose 0.20%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to a sanguine opening shrugging weak leads from the Asian stock markets that largely remained influenced by the overnight Wall Street which settled on a sluggish note on the back of weaker than expected sales reports from retailers and another rise in claims for unemployment benefits. Soon after the positive opening the frontline indices went on to test the psychological 5,600 and 18,650 levels but lack of support at higher levels pulled the indices to lower levels. Thereafter, the benchmarks sank into the red terrain as RIL annual general meeting turned out to be a low key affair, not giving out any notable upside triggers to the markets. The bourses continued to tread under the water throughout the session thereon as investors appeared reluctant to pile up long positions amid the growing uncertainties and challenging macro-economic backdrop that prevailed in the local markets. Eventually the key indices snapped yet another session with losses of over half a percent and settle around psychological 5,500 and 18,400 levels. Market breadth remained negative as there were 1306 shares on the gaining side against 1485 shares on the losing side while 141 shares remained unchanged.
Finally, the BSE Sensex declined by 117.70 points or 0.64% to settle at 18,376.48 while the S&P CNX Nifty slipped 33.60 points or 0.61% to settle at 5,516.75.
The BSE Sensex touched a high and a low of 18,672.65 and 18,345.85, respectively. The BSE Mid cap and Small cap index were down by 0.34% and 0.05% respectively.
The top gainers on the Sensex were Reliance Communication up 3.95%, L&T up 2.18%, Mahindra & Mahindra up 0.96%, Reliance Infrastructure up 0.85% and Maruti Suzuki up 0.82%.
On the flip side, HDFC down 2.99%, Hindalco Industries down 2.55%, Jaiprakash Associate down 2.36%, Tata Motors down 2.29% and Reliance Industries down 1.65% were the top losers on the index.
Meanwhile, India, which already has comprehensive Double Taxation Avoidance Agreements (DTAA) with around 80 countries, has notified the DTAA with the Government of Mozambique for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on May 31, 2011.
Double taxation is the imposition of two or more taxes on the same income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes). Such double tax liabilities are mitigated by tax treaties like DTAA between countries.
Besides facilitating economic cooperation, the DTAA between India and Mozambique provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state. Examples of permanent establishment include a branch, factory, office, place of management, etc. Profits of a construction, assembly or installation projects will be taxed in the state of source if the project continues in that state for more than 12 months, according to the official statement issued by the finance ministry.
Under the agreement, the profits derived by an enterprise from the operation of ships or aircraft in international traffic shall be taxable in the country of residence of the enterprise. Moreover, dividends, interest and royalties income will be taxed both in the country of residence and in the country of source. However, the maximum rate of tax to be charged in the country of source will not exceed 7.5% in the case of dividends and 10% in the case of interest and royalties. Capital gains from the sale of shares will be taxable in the country of source, the release stated.
According to the statement, the nations will also engage in effective exchange of information and assistance in collection of taxes between tax authorities of the two countries in line with internationally accepted standards including exchange of banking information and incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of by the genuine residents of the two countries.
The pact will also provide tax stability to the residents of India and Mozambique and facilitate mutual economic cooperation, besides stimulating the flow of investment, technology and services between India and Mozambique.
The only gainers on the BSE sectoral space were Capital Goods (CG) up 0.75% and Consumer Durables (CD) up 0.46%.
The top losers in the BSE sectoral space were and Oil & Gas down 1.34%, Metal down 1.05%, Public Sector Unit (PSU) down 1.03%, Health Care down 0.94% and FMCG down 0.77%.
The S&P CNX Nifty touched high and low of 5,604.95 and 5,507.20, respectively.
The top gainers of the Nifty were Reliance Communication up 4.50%, L&T up 2.53%, Reliance Capital up 2.51%, Sesa Goa up 2.17% and Powergrid up 1.96%.
On the flip side, HDFC down 3.07%, Axis Bank down 2.41%, SAIL down 2.28%, Tata Motors down 2.25% and Hindalco down 2.16% were the major losers on the index.
European markets were trading in mix. France's CAC 40 down by 0.20%, Britain's FTSE 100 up 0.04%, and Germany's DAX rose by 0.27%.
Asian equity indices finished the day's trade on a mixed note on the last trading day of the week as investors in the region remained on the safer side ahead of US jobs report. Japanese shares closed with a cut of over half a percent amid caution before key US jobs data and amid ongoing political uncertainty in Japan while, Seoul shares edged marginally lower, with falls in technology stocks like LG Electronics weighing, but modest foreign investor buying and firm gains in shipyards gave some support to the market. However, Chinese benchmark rebounded from a four-month low and snapped the day's trade with a gain of over 0.80 percent as market players scooped up beaten-down shares, in particular those of industrial companies while, Taiwan stocks rose more than half a percent on Friday, led by smartphone maker HTC amid optimism it is among the few companies in the tech industry that have bright prospects this year.
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