Sensex closes 345 points up on tax clarification

Mumbai, March 30 (IANS) Indian equities markets shot up on the last trading day of the fiscal with a benchmark index closing 345 points higher Friday after Finance Minister Pranab Mukherjee clarified that holders of Participatory Notes (P-notes) will have no tax liability.

P-notes are derivatives through which overseas investors invest in Indian stock markets. These are issued by foreign portfolio investors registered with the Securities and Exchange Board of India to those investors or hedge funds who are not registered with the Indian market regulator.

A lack of clarity on taxation of P-notes has contributed to volatility in the share market.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,117.41 points, closed at 17,404.2 points, up 345.59 points or 2.03 percent compared to its previous close at 17,257.36 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended higher at 5,295.55 points, up 116.7 points or 2.25 percent from its previous close.

Broader markets too saw robust gains with the BSE 500 index closing 2.19 percent up. The BSE midcap index rose 2.35 percent, while the BSE small cap index moved up 2.04 percent.

All 13 sectoral indices on the BSE closed in the green. Oil and gas, realty and metal stocks were among the major gainers. The market breadth was positive with 1,969 stocks advancing, 913 declining and 113 remaining unchanged.

Twenty eight out of the 30 stocks on the Sensex ended among gainers. Prominent ones were: Tata Steel, up 4.04 percent at Rs.470.40; Maruti Suzuki, up 3.76 percent at Rs.1,349.10; ICICI Bank, up 3.64 percent at Rs.887.25 and RIL, up 3.23 percent at Rs.748.25.

The two losers on the benchmark were Jindal Steel, down 0.69 percent at Rs.545, and Sun Pharma, down 0.23 percent at Rs.569.50.

Asian markets closed on a dull note.

The Japanese Nikkei index edged 0.31 percent lower at 10,083.56 points.

Hong Kong's index also closed 0.26 percent lower at 20,555.58 points, while the Chinese Shanghai Composite index moved up 0.47 percent to close at 2,262.79 points.

European bourses were in the green.

Britain's FTSE 100 was trading 0.57 percent higher at 5,775 points, while the German DAX was trading 0.88 percent up at 6,935.95 points.

The French CAC 40 was ruling 1.17 percent higher at 3,420.77 points.

null