Market review: GAAR delay, oil reforms spur market, Sensex scales 2-year peak

Jan 19 2013, 15:34 IST
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Sensex ended the week above 20,000 after two years due to strong buying. (Reuters) Sensex ended the week above 20,000 after two years due to strong buying. (Reuters)
SummarySensex ended the week above 20,000 after two years due to strong buying.

fresh dollar demand from importers and some weakness in capital markets on Wednesday.

Later, it bounced back with a vengeance after the government allowed oil marketing companies (OMCs) to hike diesel price in small quantum periodically, which might help to recover their under recoveries and reduce the burden of fiscal deficit of the government.

The rupee then touched an intra-day high of 53.70 before concluding at 53.71 --highest closing since November 1, 2012, showing a rise of 105 paise, or 1.92 pct. Last week, it had risen by 31 paise, or 0.56 pct.

The Indian benchmark sensex closed the week sharply up by375.40 points, or 1.91 pct, while FIIs injected USD 697.34 mln in the first four days of the week.

On Monday, the governent said that it has postponed implementation of controversial General Anti-Avoidance Rules (GAAR) by two years to April 1, 2016, which was aimed at checking tax avoidance by overseas investors, giving a big relief to these foreign investors.

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