Sensex recovers 600 pts from day's low; Nifty regains 10,500

Benchmark indices pared most losses after sliding more than 3% and the rupee weakened as a global market rout whacked sentiment, adding to existing investor concerns ahead of a central bank meeting this week and a new capital gains tax later in the year.

The broader NSE Nifty and the benchmark BSE Sensex each fell as much as 3.7% on Tuesday, heading for a sixth consecutive session of falls, with both erasing their gains for the year.

The slump in Wall Street overnight comes as India’s record-setting share rally



came under threat following the government’s announcement of a 10% long-term capital gains tax in equities, which starts in April.

 

S&P mini futures fell as much as 2.5 per cent to nearly four-month lows in Asia, extending their losses from the record peak hit just over a week ago to almost 12 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 3.5 per cent to a one-month low, which would be its biggest fall in more than a year and a half, a day after it had fallen 1.6 percent.