After experiencing a continuous downward trend, the benchmark BSE Sensex on Friday cheered the investors finally as a weekend gift for them. The stocks logged the biggest rise in a month, surging by 506 points on Government’s move to mollify overseas investors’ taxation worries and rupee’s recovery. Traders, however, feel that Government’s easing norms over MAT issue could reduce FII’s concerns over the medium term. Snapping three days of losses, the BSE Sensex resumed on a strong footing and quickly recaptured the crucial 27,000-mark to touch the day’s high of 27,196.28. It finally closed at 27,105.39, a jump of 506.28 points or 1.90 per cent. Previously, it had soared by 517.22 points on March 30.
Experts are of view that fall in Brent oil prices and value-buying in domestic beaten-down stocks helped Sensex recover from 6-1/2 months low. On weekly basis, the 30-share Sensex recovered by 94.08 points or 0.35 per cent, to snap three weeks of losses. “Sentiments got some support with Finance Minister Arun Jaitley announcing a high level committee, which will give its recommendations on the issue of imposition of MAT on foreign investors,” Jayant Manglik, President of retail distribution at Religare Securities said.
The gauge had lost 891.48 points in the previous three days to hit 6-1/2 months low on persistent worries over MAT and delay in passage of key reforms bills in Parliament. Tata Motors, topped the gainer list from the Sensex pack with a rise of 5.18 per cent after the company raised Rs 9,040.56 crore from its right issue. The automaker was followed by Cipla, ICICI Bank, Hindalco, Bajaj Auto, HDFC Bank, HDFC, Axis Bank, RIl, Tata Power, l&T and ITC.
Share of FMCG major Hindustan Unilever rose 3.34 per cent after it reported a 16.73 per cent increase in its standalone net profit at Rs 1,018.08 crore for the March quarter. Bucking the trend, Hero MotoCorp was down 2.23 per cent after it reported a 14.05 per cent decline in its net profit. The 50-share NSE Nifty after crossing the 8,200-mark, touched also a high of 8,224.95 before closing 134.20 points or 1.67 per cent higher at 8,191.50.
On Thursday’s battered banking stocks were in the limelight with ICICI Bank, HDFC Bank, Axis Bank and SBI adding about 180 points in total to the Sensex kitty. Meanwhile, Foreign portfolio investors sold shares worth Rs 1,360.69 crore yesterday, as per provisional data. “Surprise victory of David Cameron’s Conservative Party in the UK elections has further lifted sentiments,” said Jignesh Chaudhary, Head of Research at Veracity Broking Services. Overseas, Asian stocks closed mixed on signs of global bond markets stabilising after a big sell-off in the past few days. Key indices in China, Hong Kong, Japan and Singpaore ended up by 0.45 to 2.28 per cent while indices in South Korea and Taiwan moved down between 0.12 and 0.26 per cent.