Sensex at 2 month high on EU hopes, GAAR clarifications

June 29th, 2012 - 2:44 pm ICT by IANS  

Sensex Mumbai, June 29 (IANS) A benchmark index of Indian equities markets jumped 2.17 percent - touching a two month high - in the afternoon session Friday led by European Union (EU) leaders’ proposals for reviving the economy in the Eurozone and clarifications on the General Anti Avoidance Rules (GAAR).

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,134.61 points, was trading at 17,358.67 points in the afternoon session, up 2.17 percent or 367.91 points from its previous close at 16,990.76 points - hitting its highest levels since May 2.

Positive news from Europe led to the bullish market sentiments as the Eurozone leaders Friday agreed to take emergency action to bring down Italy’s and Spain’s spiralling borrowing costs.

The two-day European Union summit which begun June 28 in Brussels is deliberating on how to prevent the Eurozone falling apart.

On the draft guidelines of the GAAR, Prime Minister Manmohan Singh Friday sought wide consultations and said these would be finalised only after receiving feedback.

As per the GAAR directives announced Thursday evening, the tax evasion rules will be invoked in cases where it was found that the entity had taken the benefits of tax avoidance treaties.

The wider 50-scrip S&P; CNX Nifty of the National Stock Exchange was trading 2.14 percent higher at 5,259.20 points.

The BSE capital goods index was up 292.25 points, the power index was up 52.40 points and the banking index was up 303.01 points.

Major Sensex gainers were Tata Power, up 3.99 percent at Rs.102.90; Maruti Suzuki, up 3.54 percent at Rs.1,158.10; ICICI Bank, up 3.50 percent at Rs.886.50; Larsen and Toubro, up 3.50 percent at Rs.1388.15 and BHEL, up 3.48 percent at Rs.228.90.

In the Asian region, the Japan’s Nikkei was up 1.50 percent, while Hong Kong’s Hang Seng gained 2.48 percent.

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