Market review: GAAR delay, oil reforms spur market, Sensex scales 2-year peak
- Kumar Vishwas claims threat to life, to file FIR against Rahul and Priyanka
- Vote for Supriya Sule or lose water, âthreatensâ Ajit Pawar
- Watch video: Baba Ramdev caught on camera discussing money with BJP candidate
- Nobel laureate Gabriel Garcia Marquez dies at 87
- 2 States movie review: Alia Bhatt is a surprise
Stocks: The BSE benchmark Sensex ended the week above 20,000 after two years due to strong buying mainly in refinery, realty and PSU sectors on the back of partial deregulation of diesel prices and the Government's decision to defer the implementation of controversial anti-tax evasion proposal GAAR.
Rate cut hopes by RBI in its monetary policy meeting on January 29 after a fall in inflation, as measured by Wholesale Price Index (WPI), to three-year low and persistent foreign funds inflow into equities also boosted the market.
Comments from the Finance Minister about immediate priority of the Government to keep the investment cycle going, too, aided the upsurge.
The 30-issue Sensex jumped 243 points on Monday, its best single-day gain in the current calender year, on all- round buying as Government deferred implementation of the General Anti-Avoidance Rules (GAAR) by two years, from April 2014 to to April 2016, and a fall in inflation in December.
The BSE benchmark resumed higher at 19,689.09 and shot up further to a high of 20,126.55 before ending at 20,039.04, a gain of 375.40 points, or 1.91 per cent, its best level since January 6, 2011.
The NSE 50-share Nifty also rose by 113.10 points, or1.90 per cent, to end at over two-year high of 6,064.40.
"The partial decontrol in diesel prices triggered a rally in oil marketing companies," said Amar Ambani, Head of Research at brokerage IIFL.
The move to allow hike in diesel prices periodically to a maximum of 0.50 paisa per month would enable OMCs to cut their under-recoveries, thereby reducing the burden of fiscal deficit of Government. It will also reduce the oil subsidy bill, where diesel accounts for 59 per cent of total subsidy.
Refinery counters like IOC, ONGC, BPCL, OIL, HPCL and RIL zoomed between 7.11 per cent and 22.83 per cent. As a result, the BSE-Oil&Gas flared up by 10.96 per cent and was the top gainer from the sectoral indices.
- As EC website crashes due to overload, party workers use apps to locate voters
- An entire society in Kothrud could not vote
- Chaos, anger across city over missing names
- Mulayam pushes third front, says will stake claim to PM post
- Don’t look at my candidates, votes for me: Maya to Dalits
- AAP biggies focus on Vishwas, Kejri seats, other units suffer