Benchmark indices finally managed to overpower the bears with investors cheering the new draft guidelines on the GAAR. The sentiments turned extremely buoyant post the GAAR clarifications and on renewed reform hopes with PM taking the charge of FM. The Central Board of Direct Taxes issued draft guidelines for the implementation of the General Anti-Avoidance Rules, or GAAR.
For the week ended June 29, the 30-share Sensex ended at 17,430 points up 457 points or 2.69% and the 50-share Nifty ended higher by 133 points or 2.58% at 5,279.
Besides, EU easing repayment rules for Spanish banks, relaxing conditions for possible aid to Italy and unveiling nearly $150 bn growth plan for the region's economy also cheered the sentiments among the investors. The Rupee too gained strength towards the end of the week against the US dollar.
In a move to attract foreign funds, the Reserve Bank of India has the FII limit for investment in government securities by $5 billion to $20 billion.
BSE power index led gains and moved up 5% to 1,987. Metal, bankex and capital goods indices added 3-4% each.
Tata Power gained 11% to Rs 105. New Delhi's electricity regulator has approved higher electricity tariffs in the country's capital, by an average of 20.8%, starting July 1 to help the company narrow losses. Coal India advanced 3% at Rs 347.
Auto share witnessed profit taking following a recommendation by a top government panel to make changes in the diesel subsidy system. Maruti Suzuki added 6.2% to Rs 1169. Hero MotoCorp, Bajaj Auto and M&M advanced 1-2% each.
From banking space, SBI ended flat at 2,159. SBI has cut interest rate on loans to exporters by 0.5% within days of the Reserve Bank increasing the export refinancing limits of banks.
Meanwhile, RBI allowed Sebi to register long term investors like Sovereign Wealth Funds (SWFs), multilateral agencies, endowment funds, insurance funds, pension funds and foreign central banks, to also invest in government bonds for the entire limit of $20 billion.
The Prime Minister's Office (PMO) has asked the Coal Ministry to fast-track the process of taking back the coal blocks from private firms which have not developed them and giving the deallocated coal mines to Coal India (CIL).
Further, the PMO has said the CIL should appoint mine developer and operators (MDOs) to begin production from these deallocated coal blocks without delay, the official said.
Euro zone leaders agreed on Friday to take emergency action to bring down Italy's and Spain's spiraling borrowing costs and to create a single supervisory body for euro zone banks by the end of this year, a first step towards a European banking union.
Top Section
Explore Business Standard