Business
Key Indian equity index stages 500-point recovery
Mumbai, May 8
Recovering from a three-day
fall, a key Indian equity market index ended over 500 points up on
Friday, with sentiments lifted by government assurances that it will
seek advice from an expert panel on the disputed issue of minimum
alternate tax on foreign funds.
After a steady rise since the
opening bell, the sensitive index (Sensex) of the Bombay Stock Exchange
(BSE) closed on Friday at 27,105.39 points -- up 506.28 points, or 1.90
percent. At the National Stock Exchange, the Nifty closed at 8,191.50
points, up 134.20 points or 1.67 percent.
The recovery was also
broadbased with as many as 1,860 shares, out of the 2,811 that traded on
Monday on the Mumbai bourse, ending in the positive territory. Also,
while 822 lost some ground, 129 others remained unchanged.
"Auto
stocks, private sector banks and index heavyweights led rally as key
benchmark indices surged on the last trading session of the week," said
HDFC Securities, adding that a decline in crude prices and rupee`s
recovery against the dollar also helped boost sentiments.
The
gainer within the 30-share Sensex was Tata Motors, up 5.18 percent at
Rs.513.50; followed by ICICI Bank, up 4.09 percent at Rs.316.95; Cipla,
up 4.03 percent at Rs.653.70; Hindalco, up 3.5 percent at Rs.139.00; and
Hindustan Unilever, up 3.34 percent at Rs.894.60.
The top loser
within the group was Hero Motor, down 2.23 percent at Rs.2,301.55; ONGC,
down 0.96 percent at Rs.315.65; Tata Consultancy, down 0.50 percent at
Rs.2,530.70; Tata Steel, down 0.22 percent at Rs.366.20; and NTPC, down
0.18 percent at Rs.142.05.
Among the other indices, the BSE 100
was up 1.73 percent and the BSE 200 was up 1.72 percent. The BSE mid-cap
and the BSE small cap also gained 1.70 percent each. This apart, among
the 12 sector-specific indices of the exchange, only one -- consumer
durables -- lost ground.
The mood was evidently lifted by the government assurances to remedy its taxation policy.
Finance
Minister Arun Jaitley on Thursday said in parliament the ministry has
referred the issue of minimum alternate tax dispute with foreign funds
to a panel headed by Law Commission chairman A.P. Shah, and has
requested early suggestions.
"Uptrend was also helped by the
comments from global rating agencies like Fitch and Moody's that said
today on Friday that India's credit ratings will remain unaffected by
the recent surge in capital outflows," said brokerage Sharekhan.
The reason: India's external balances, relative to peers, was strong and adequate.
Globally,
US markets had also ended in the green on Thursday, even as the UK
market led the other bourses in Europe to gain ground as Prime Minister
David Cameron's party was set to return to power for another five years.
Even closer home, the Asian markets rallied on Friday.
On
Thursday, the Sensex had fallen for the third straight day, by 118.26
points, or 0.44 percent, to a six-and-half month low, as prevailing
uncertainties over tax policy, rising crude oil prices and falling value
of the rupee that touched a 20-month low, continued to rock the mood.
In
the process, the Sensex closed at its lowest level since October 21
last year and the Nifty at its lowest level since December 17. On
Wednesday, the Sensex crashed 722.77 points, or 2.63 percent, while the
day before it fell 50.45 points, or 0.18 percent.