Sensex surges 193 pts, Nifty ends at 7900; DRL up 3%, banks lead

Moneycontrol Bureau
The Nifty managed to close above 7900 after almost two weeks. The 50-share index is up 2 percent from its recent lows of 7697. The Sensex closed above its 200-day moving average. The Sensex was up 193.20 points or 0.7 percent at 25790.22. For the time being, jittery over the amendments to Mauritius Double Tax Avoidance Agreement (DTAA) has been away after the initial negative reaction seen on Wednesday’s trade. However, Sridhar Sivaram of Enam Holdings says the bigger issue than the Mauritius treay is the general anti-avoidance rule (GAAR), which will kick off from April next year. Arvind Sanger of New York-based Geosphere Capital said the tweak to the tax treaty with Mauritius may be well-intentioned, but it could hamper foreign investors' access to the Indian markets.Monsoon hopes are cheering up market investors. The Meteorological Department has said has said Maharashtra is likely to receive 27 percent more rainfall than the annual average this monsoon. The Konkan region is likely to get about 27.50 percent more than the annual average rainfall this rainy season, a press release issued by district Informational Department said.In stock specific action, banks, auto, IT and metals lead the market rally. ICICI Bank, Asian Paints, SBI and TCS were major gainers in the Sensex.

Dr Reddy’s Q4 profit was hit by a one time Venezuela write off worth Rs 430 crore. The drug major’s net profit fell 86 percent at Rs 74.6 crore in January-March quarter from Rs 518.9 crore in corresponding quarter last fiscal. Its total income also slipped 3 percent to Rs 3756.2 crore against Rs 3870.4 crore in year-ago period.

The stock, however, reacted positively (up 3 percent) as uncertainty from Venezuela operations are over.  

M&M, Axis Bank, HUL, Maruti and L&T were losers in the Sensex.