The European Healt Insurance Card

India’s benchmark equity index Sensex declined 3.5% this week, posting its worst weekly fall in nearly four-and-a-half months, hurt by the ongoing tax row between foreign investors and the government. Dismal corporate earnings and a likely sub-par monsoon added to investors’ woes. On Friday, the 30-share Sensex closed 1.07%, or 297.08 points, lower at 27,437.94 points, taking losses for the week to 3.53%—its worst weekly fall since the week ended 12 December. The National Stock Exchange’s 50-share Nifty slipped 1.11%, or 93.05 points, to 8,305.25. It was the lowest close since 14 January for both indices. Market breadth was negative with only one stock advancing for every three that declined on BSE. A dispute over tax demands on past capital gains made by foreign portfolio investors (FPIs), a logjam in Parliament over the land acquisition bill and tepid prospects for corporate earnings have hurt investor sentiment. FPIs are battling it out with the tax department, which has issued notices demanding that they pay Rs.40,000 crore in minimum alternate tax (MAT), a levy on profit-making companies that do not pay corporate income tax on account of incentives and exemptions.

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