Mumbai: The BSE Sensex surged over 510 points to trade above the 27,000 level while the Nifty reclaimed the 8,200 mark in the afternoon trade today as funds and retail investors went about creating fresh positions, driven by the government’s decision to refer MAT issue to a high-level committee.
Besides, a rebound in the rupee from the 20-month low also boosted sentiment.
At the forex market, the rupee was trading 32 paise higher at 63.91 to a dollar (intra-day). It had lost 69 paise, or 1.09 per cent, to close at 20-month low of 64.23 in yesterday’s trade.
The rally was led by a strong showing in auto, realty, banking, capital goods, PSUs, FMCG, metal and IT stocks on fresh capital inflows.
The 30-share Sensex soared 510.52 points, or 1.91 per cent, to trade at 27,109.63 at 1315 hours. The gauge had lost 891.48 points in the previous three straight sessions to hit 6-1/2 months low on sustained capital outflows by foreign funds on lingering worries over MAT and delay in passage of key reforms bills in Parliament.
The NSE 50-share barometer Nifty regained the crucial 8,200 mark by climbing 147.80 points, or 1.83 per cent, to quote at 8,205.10.
Equity brokers said sentiment was buoyed after Finance Minister Arun Jaitley yesterday announced that a high-level committee will look into the controversial issue of Minimum Alternate Tax (MAT).
Furthermore, covering-up of short positions in several blue-chip stocks by speculators and positive cues from global markets supported the rebound.
Among the 30-Sensex stocks, Tata Motors topped with a rise of 5.45 per cent to Rs 514.80 after the company raised Rs 9,040.56 crore from its right issue.
Other major gainers were Cipla, ICICI Bank, Axis Bank, Bajaj Auto, HDFC Ltd, Tata Power, M&M, L&T, Hindalco, HDFC Bank, Dr Reddy’s, BHEL, Maruti Suzuki, RIL, Hind Unilever, SBI and Wipro.
PTI
