Indian markets extended their losses in early afternoon session amid trade uncertainty. Hefty selling in IT sector stocks kept the markets lower. Besides, escalating tensions between the US and Iran also dampened the investors’ sentiments. Traders were worried after U.S. President Donald Trump said that any countries that want to ‘play games’ after the court's tariff ruling would be hit ‘with a much higher tariff’. Sector wise, pharma stocks remained in limelight as India’s pharmaceutical journey is witnessing a paradigm shift. According to Union Minister for Chemicals and Fertilizers, Jagat Prakash Nadda, India is transitioning from ‘pharmacy of the world’ to an ‘innovator of the world’, on the back of a strong focus on healthcare security, manufacturing resilience, and scientific excellence. On the global front, Asian markets were trading mixed as investors assessed U.S. trade uncertainty and monitored Middle East developments.

The BSE Sensex is currently trading at 82277.92, down by 1016.74 points or 1.22% after trading in a range of 82275.94 and 83079.51. There were 6 stocks advancing against 24 stocks declining on the index.

The only gaining sectoral indices on the BSE was Metal up by 0.07%, while IT down by 4.64%, TECK down by 4.01%, Telecom down by 2.08%, Realty down by 1.93% and Consumer discretionary was down by 1.31% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 0.62%, Hindustan Unilever up by 0.61%, Power Grid up by 0.51%, Axis Bank up by 0.39% and NTPC up by 0.27%. On the flip side, Tech Mahindra down by 6.40%, HCL Tech down by 6.11%, Eternal down by 4.98%, Infosys down by 4.34% and TCS down by 3.77% were the top losers.

Meanwhile, India and France have amended the double taxation avoidance agreement which will provide full taxing rights in respect of capital gains to the nation where such company is a resident and delete the Most-Favoured-Nation (MFN) Clause bringing in certainty in taxation. Under the amendments, the single 10% tax rate on income from dividends will be replaced by slit rate of 5% for those who hold at least 10% of capital and 15% for all other cases. The protocol amending the India-France Double Taxation Avoidance Convention (DTAC) was signed during the recent visit of France’s President Emmanuel Macron to India.

The amendments also modify the definition of 'Fees for Technical Services' by aligning it with the definition in India US Double Taxation Avoidance Agreement, and expands the scope of 'Permanent Establishment' by adding Service PE. Further, it updates the provisions on exchange of information and introduces a new Article on assistance in collection of taxes, as per international standards. Moreover, the amending protocol incorporates within the DTAC, the applicable provisions of BEPS Multilateral Instrument (MLI), that had already become applicable consequent to the signing and ratification of MLI by India and France.

The Central Board of Direct Taxes (CBDT) has noted that the amendments would enable and facilitate seamless exchange of information and strengthen mutual tax cooperation between India and France. It added that the amendments will provide greater tax certainty to the taxpayers and boost flow of investment, technology and personnel between India and France, and thereby strengthen the economic relationship between the two countries.

The CNX Nifty is currently trading at 25421.05, down by 291.95 points or 1.14% after trading in a range of 25418.90 and 25641.80. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 0.51%, Sun Pharma up by 0.50%, Power Grid up by 0.49%, NTPC up by 0.28% and Axis Bank up by 0.27%. On the flip side, Tech Mahindra down by 6.31%, HCL Tech down by 6.08%, Eternal down by 4.89%, Infosys down by 4.22% and TCS down by 3.67% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 927.56 points or 2.67% to 34,700.82, Nikkei 225 surged 547.3 points or 0.95% to 57,373.00, KOSPI increased 123.55 points or 2.07% to 5,969.64 and Shanghai Composite was up by 37.33 points or 0.91% to 4,119.40. On the flip side, Straits Times fell 25.16 points or 0.5% to 5,016.17, Jakarta Composite plunged 28.11 points or 0.33% to 8,367.97 and Hang Seng was down by 541.91 points or 2% to 26,540.00.