Stock market rebounds with Rupee


Mumbai: Situataion chanage in the Indian ctock market as benchmark indices recovered fabulously from yesterday’s carnage. Both sensex and nifty gained around 2%.  Besides, a rebound in the rupee from the 20-month low also boosted the sentiment.
Government’s promise of a high-level committee to look into the MAT issue lifted sentiments while analysts attributed the rebound in global equity markets to the return of calm in global bond markets and the surprise victory of David Cameron’s conservative party in the UK elections. The 30-share Sensex ended up 506 points at 27,105 and the 50-share Nifty closed up 134 points at 8,191.
Indices moved upward by the gains in financials, auto and index heavyweights on government’s accommodative stance on the contentious issue of capital gains taxation while firm global cues too helped in keeping the momentum going.
Market breadth in BSE ended positive with 1,862 advances against 834 declines.
As per existing norms, while long term gains are exempted foreign institutional investors are required to pay 15% tax on short-term stock gains and 5% on bond profits. However, government’s resolve to recover unpaid taxes raised the concerns over retrospective taxation. Finance Minister Arun Jaitley has estimated that such claims could reach as much as Rs 40,000 crore.
The rupee appreciated further from its initial gains by 27 paise to touch 63.96 against the greenback in the evening trade following sustained dollar selling from banks amid equity market rally