MUMBAI: Sensex and nifty rebounded sharply on Friday after the government assured that it was committed to a stable tax regime and will set up a committee to address the issue of retroactive taxes on foreign investors.
www.sevagiri.com
The sensex was up over 400 points to above the 27K level while nifty was up 110 points at 8,167. Of the 30 sensex stocks, 26 advanced. Since the controversy about imposition of MAT on FIIs gained traction in early April, FIIs have net sold stocks worth about $2 billion in the Indian market, pulling the sensex down by about 12% to below 27K level.
As a result of the FII pullout, rupee also fell to a 20-month low on Thursday, to trade below the 64 to a dollar mark. As the stock market recovered, the rupee also rallied to above the 64 mark in afternoon trades on Friday. The day's session also got a boost from two of the three leading global ratings agencies, Moody's and Fitch, each saying that the recent FII outflow will not impact India's sovereign ratings. Market players also said that in case the sensex remained above the 27K mark during late session, more short covering by speculators who had earlier sold in anticipation of further slide in the index, could rush in to cut their losses. This in turn could take the sensex even higher.
Source - Times Of India
www.sevagiri.com
The sensex was up over 400 points to above the 27K level while nifty was up 110 points at 8,167. Of the 30 sensex stocks, 26 advanced. Since the controversy about imposition of MAT on FIIs gained traction in early April, FIIs have net sold stocks worth about $2 billion in the Indian market, pulling the sensex down by about 12% to below 27K level.
As a result of the FII pullout, rupee also fell to a 20-month low on Thursday, to trade below the 64 to a dollar mark. As the stock market recovered, the rupee also rallied to above the 64 mark in afternoon trades on Friday. The day's session also got a boost from two of the three leading global ratings agencies, Moody's and Fitch, each saying that the recent FII outflow will not impact India's sovereign ratings. Market players also said that in case the sensex remained above the 27K mark during late session, more short covering by speculators who had earlier sold in anticipation of further slide in the index, could rush in to cut their losses. This in turn could take the sensex even higher.
Source - Times Of India
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