BSE Sensex shrugs off Budget 2013 blues recovers on FinMin assurance
Shrugging off Budget blues, the BSE benchmark Sensex today bounced back from three-month lows to end nearly 57 points higher at 18,918.52 on value-buying after the Finance Ministry promised to address concerns over Tax Residency Certificate (TRC).
Sensex, which had tumbled 291 points yesterday to three month lows of 1,8861.54 on hike in taxes and FII concerns, opened firm and rose to an intra-day high of 18,988.97. It closed at 18,918.52, a gain of 56.98 points or 0.30 per cent.
On similar lines, the National Stock Exchange Nifty rose by 26.65 points, or 0.47 per cent to 5,719.70.
Finance Ministry earlier today sought to assure worried investors saying their concerns on TRC for claiming treaty benefits will be 'suitably' addressed during discussion on Finance Bill in Parliament.
Tightening rules for foreign investors claiming benefit of tax treaties, Finance Minister P Chidambaram yesterday had said TRC will not be enough to seek benefits under the Double Taxation Avoidance Agreement (DTAA).
"The markets were able to recover and gains ground once the clarity on TRC was received," said Milan Bavishi, Head Research, Inventure Growth & Securities.
Meanwhile, good sales attracted investors to Maruti Suzuki that gained 5 per cent. Bajaj Auto and M&M also rose.
HDFC, L&T, HUL, Cipla, Jindal Steel gained 2-3 per cent.
Buying activity was seen in stocks of consumer durables, capital goods, auto and banking, while IT stocks like Infosys gained on weakening rupee. The domestic currency was last trading at 54.92 versus US dollar, up 1 per cent.
Banking stocks rose on hopes that
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