Mumbai: Logging its biggest rise in over a month, the benchmark BSE Sensex today surged by 506 points to 27,105.39 points on government's move to mollify overseas investors' taxation worries and rupee's recovery.
Firm global stocks tracking UK election result, fall in Brent oil prices, value-buying in domestic beaten-down stocks helped Sensex recover from 6-1/2 months low, traders said.
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.
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.
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. The 50-share NSE Nifty after crossing the 8,200-mark, touched a high of 8,224.95 before closing 134.20 points or 1.67 per cent higher at 8,191.50.
Government's move over MAT issue could reduce FII's concerns over the medium term, traders added. 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.