Foreign portfolio investors have sold Indian shares worth at least $656.6 million in the last eight sessions, excluding Daiichi Sankyo Co's $3.2 billion share sale in Sun Pharmaceutical Industries, which was heavily subscribed by overseas investors.
The tax department will rule within a month on alternative tax claims made against foreign investment funds that are covered by tax treaties, the finance ministry said on Friday, as the government moves to defuse its latest tax row with investors.
"Earnings so far have been disappointing, we are hoping the manufacturing sector would support with better results in the coming days," said G. Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.
The government has no choice but to heed to foreign investors' demand on taxes, he added.
The Nifty declined as much as 1.01 per cent to break its 200-day moving average of 8,254.17 for the first time since February 6, 2014.
Both the indexes were heading towards their lowest close since January 8, 2015, and their eighth session of losses in nine.
HDFC fell 3.6 per cent, while State Bank of India was down 2 per cent.
Infosys lost 1.3 per cent following a near 6 per cent slump on Friday after its January-March dollar revenue growth and outlook lagged expectations.
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