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The market closed on a positive note as it seemed to digest details of the Union Budget. After major sell-off seen on Thursday, the market managed to pullback today especially in the last few trading hours as the finance ministry issued clarification on tax residency certificates (TRC).
Adding 5%, Maruti was the biggest gainer of the day on the BSE. The car maker reported February sales largely in-line with expectations. The management also clarified to analysts that the hike in withholding tax on royalty in Budget from 10 percent to 25 percent will not impact them as the India-Japan double taxation treaty provides that withholding tax does not exceed 10 percent.
Other major gainers included Jindal Steel (up 2.9 percent), Tata Power (up 2.7 percent) and Bajaj Auto (up 2.6 percent).
On the downside were Bharti Airtel (down 3.9 percent), ITC (down 1.4 percent) and Dr Reddy's Lab, Hero MotoCorp, TCS losing around 1 percent each.
Meanwhile, the BSE midcap which was severely battered this week, managed to gain marginally by 0.3 percent. However, one of the major losers among the midcap stocks, Core Education jumped 18.78 percent to Rs 65.15. The IT education firm today clarified that it was indeed the sale of shares pledged by the promoters that saw the stock tumble from a high of Rs 300 to a low of Rs 49.5, within four trading sessions.
Among the other midcap stocks, Opto Circuits, Ashok Leyland and UCO Bank are some the big gainers adding 4-5 percent.
Key equity benchmarks recover after the finance ministry clarified on finance minister P Chidambaram's tax residency certificates announcement, which had created confusion among FIIs.
The market came off highs in afternoon trade. The Nifty was hovering around 5700 pulled lower by select rate sensitive and heavyweight stocks. The Sensex was up 25.64 points at 18887.18, and the Nifty gained 10.55 points at 5703.60.
Key equity benchmarks gave up some of their early morning gains. The Sensex is up 0.20 percent, rebounding from three-month lows hit in the previous session, while the 50-share Nifty is also up 0.24 percent.
BSE Sensex and NSE Nifty strengthened their positions since the first trades. At 10.49 AM, the Sensex had moved up 71.15 points at 18932.69, and the Nifty gained 23.35 points at 5716.40.
Post the steep correction on Thursday, which coincided with expiry, benchmark indices opened flat led by technology and infrastructure stocks.
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