Markets plunge on proposed financial regulations, Sensex down 490 points

Proposed new regulations to control black money, retrospective taxation and containment of the central bank's powers subdued the Indian equity markets on Monday.

These factors led the barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) to plunge 490 points during the late-afternoon trade session on Monday.

Both foreign and domestic investors awaited more details on the new financial regulations that have been suggested by a slew of committees.

Foremost amongst their concerns are the inclusion of "P-notes" - foreign investments - under the black money scanner. This has been suggested by the special investigation team (SIT) on black money.

The market is also seeking further clarity on the recommendations made by the Justice A.P.Shah committee on minimum alternate tax (MAT) and the government's new financial code.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also traded deep in the red. It was trading down 155.25 points or 1.82 percent at 8,366.30 points.

The S&P BSE Sensex, which opened at 28,117.65 points, was trading at 27,622.74 points (2.45 p.m.), down 489.57 points or 1.74 percent from the previous day's close at 28,112.31 points.

The Sensex so far touched a high of 28,117.65 points and a low of 27,621.44 points in the intra-trade.