Sensex at two-year high

Good corporate results, deferral of GAAR buoy sentiment

The buoyant sentiment on the bourses due to good financial results by the corporates and deferal of rules on tax avoidance enabled the bombay stock exchange(BSE) 30 share sensitive index(Sensex), to cross 20,000 marks intraday on January 16, 2013 though it closed below that mark.

The governements decision to deffer the implementation of controversial rules on tax avoidance has been a big positive for the market.

The Sensex closed at 19986.82 with a gain of 80.41 points. A broader National Stock Exchange's index, Nifty, closed at 6056.60, up 32.55 points.

Strong corporate earnings of Infosys, Axis Bank and TCS reported so far and expectations of a rate cut by the Reserve Bank of India(RBI) following a downward trajectery in Whole Sale Price Index(WPI) Inflation were suggesting that the current rally was likely to continue.

The fact that foreign Institutional Investors have alreasy pumped in Rs 8,700 Crore this calender year into Indian equities show the inherant strength in the market.

The Rupee fell back with a loss of 12 paise at 54.61 against the dollar on heavy demand for the US currency from importers despite heavy capital inflows.


Courtesy: THE HINDU