(Reuters) - Indian shares fell on Wednesday on worries future foreign equity inflows would be hit after the country said it will start imposing capital gains taxes on investments coming from Mauritius starting next year.
Mauritius is the top source of foreign funds into India, though analysts welcomed India's action to impose the tax on future investments and not existing holdings.
The broader NSE Nifty was down 0.8 percent at 0350 GMT after initially falling as much as 1.4 percent shortly after the open.
The benchmark BSE Sensex was down 0.8 percent.
(Reporting by Aastha Agnihotri in Bengaluru; Editing by Rafael Nam)
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