REUTERS - India's stock markets ground out marginal gains on Wednesday after the government decided to exempt foreign investors from the controversial minimum alternate tax (MAT) but the gains were capped by weak Asian markets that fell on worries over slowing global growth.
Finance Minister Arun Jaitley said on Tuesday the government had accepted the recommendations of a panel set up to examine the issue of exempting FIIs from MAT claims prior to April 1.
"You will not see any magical recovery, but at least we will stabilise because what MAT will do is that sell side figure from FIIs will get subdued if it doesn't stop," Gaurang Shah, vice president at Geojit BNP Paribas, said.
Foreign institutional investors sold a record net 168.77 billion rupees ($2.55 billion) in Indian shares in August, more than the previous monthly record of 153.47 billion rupees in October 2008, according to regulatory data.
Indian stocks were somewhat weighed down by Asian markets, which fell for a third straight day on Wednesday as weak manufacturing data from China, the United States and Europe fuelled worries about slowing global growth.
The benchmark BSE Sensex was up 0.07 percent while the broader Nifty gained 0.12 percent, on track to reverse losses from the previous two sessions.
Gains in IT and consumer goods stocks were negated by losses in financial and auto stocks.
Infosys
Bank stocks extended losses from the previous session. State Bank of India fell 2.2 percent, Axis Bank
Mahindra & Mahindra
(Reporting by Karen Rebelo in Mumbai; Editing by Sunil Nair)
