Indian shares rallied on Friday after the new draft guidelines on the general anti-avoidance rules (GAAR) announced late night yesterday suggested that the tax evasion rules would not apply retrospectively and will be triggered only above a certain income threshold. It seems Prime Minister Manmohan Singh, who is also acting as Finance Minister, is making vigorous efforts to ' revive the animal spirit in the country's economy.'
Asian markets are also trading higher across the board, offering further support, after European leaders agreed to a series of long-debated measures, including a plan to devote Euro120 billion for "immediate growth measures" and easing repayment rules for emergency loans to Spanish banks to help stimulate growth in the bloc's weakest economies. The euro spiked against the dollar in the wake of returning risk aversion.
The benchmark 30-share Sensex is currently up 303 points or 1.78 percent at 17,294, while the broader Nifty index is climbing 87 points or 1.7 percent to 5,237. Capital goods manufacturers, power, banking and FMCG stocks are among the prominent gainers.
Automakers are also rallying after oil prices cut petrol prices by Rs 2.46 per litre, the second reduction this month. Tata Motors is up 1.6 percent, Maruti Suzuki is climbing 2.6 percent, Bajaj Auto is gaining 1.4 percent and Hero MotoCorp is up 1.8 percent.
Tata Power is climbing 3.2 percent as it completed the purchase of a 51 percent equity stake in Tata BP Solar India.
NCC is up a whopping 8 percent after billionaire investor Rakesh Jhunjhunwala increased his stake in the company. JSW Steel is moving up 1.5 percent after redeeming foreign currency convertible bonds issued in 2007.
Gati is rising 1.9 percent after Japan's Kintetsu World Express invested Rs 267.7 cr to pick up a 30 percent equity holding in a JV with the Indian logistics company. Cairn India is tumbling 6.3 percent after reports said U.K-based oil and gas giant Cairn Energy Plc plans to see more stake in its Indian subsidiary.
Indian shares shrugged off weak global cues to end modestly higher on Thursday, with continued hopes for government action underpinning sentiment. The BSE Sensex ended a volatile session up 23 points or 0.14 percent at 16,991, while the broader Nifty index rose by 7 points or 0.14 percent to 5,149.
by RTT Staff Writer
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