FPI surcharge makes markets see red; Sensex posts biggest fall in 9 months

The Indian markets fell the most in nine months with the benchmark Sensex dropping as much as 908 points in intra-day trade after a combination of domestic as well as global factors hit investor sentiment. 

The surcharge on foreign portfolio investors (FPIs), 20 per cent tax on buyback of securities, and proposal to increase the public float by 10 per cent disappointed investors. Meanwhile, most global equities fell sharply after the strong US job data cast doubts on whether the pace of interest rate cuts by the US Federal Reserve will keep pace with market expectations. 

The Sensex ended at