Investors await response to debate on Finance bill

Markets and investors, particularly foreign investors are keenly awaiting a debate on the Finance Bill, with hopes of a re-think on the General Anti Avoidance Rules (GAAR) provisions. It is unlikely that Pranab Mukherjee will make any changes, though the thoughts of a weakening rupee and current account deficit might play on his mind.

A debate is likely to be held today, with a response from the Finance Minister expected today itself.

As the rupee weakens the FM cannot even consider being hostile to foreign investors.

It's important that the Finance Minister finds his way through without hurting foreign investor sentiments and also pushing through his agenda.

His action will be extremely crucial given that most of the economic parameters at the moment have hit a nadir and are unlikely to recover anytime soon.

The equity markets have come off sharply over the last few weeks and there has been constant selling pressure from foreign institutional investors in equities, fearing that they might be taxed due to the new GAAR provisions.

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