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(Updated at 1430 hours)
Markets have extended the gains in late noon trades after the Finance Ministry clarified tax residency certificate. The Finance Ministry today clarified that Tax Residency Certificate (TRC) issued by Mauritius would be accepted by the tax authorities.
However, the Ministry did not throw clarify whether TRC is a sufficient condition or not for availing tax benefit under the treaty between India and Mauritius.
The clarification from the ministry comes after the government created confusion with a proposal on Thurday stating a tax residency certificate "shall be necessary but not a sufficient condition" to take advantage of double taxation avoidance agreements.
At 2:30 PM, the Sensex was up 85 points at 18,943 and the Nifty was up 34 points 5,727.
In the Asian region, stocks in China and Hong Kong remained subdued after China's manufacturing output in February grew at a marginal space. The Shanghai was down 0.2% and the Hang Seng slipped 0.4%. Among other markets, Nikkei, Straits Times and Taiwan Weighted were up 0.04-0.8% each.
Back home, Union Finance Minister Palaniappan Chidambaram in his Budget announcement on Thursday tried to perform a delicate balancing act by both responding to the political requirements of a pre-election-year Budget and the economic compulsions of fiscal consolidation and investment revival.
On the sectoral front, BSE Consumer Durable index has surged by almost 3% followed by counters like Capital Goods, Power, Auto, Metal, PSU and Banks, all gaining between 1-2%. However, BSE Realty index has declined by almost 3%.
Maruti Suzuki is the top Sensex gainer, up almost 6%. The country's largest car maker Maruti Suzuki India (MSI) today reported 7.89% decline in its total sales at 1,09,567 units in February 2013.
Mahindra and Mahindra (M&M) is trading higher by 2% at Rs 885 after the company reported 11% year-on-year growth in its auto sales numbers at 47,824 units in February 2013.
Other notable gainers include JSPL, L&T, Tata Power, HDFC, Bajaj Auto, HUL, ICICI Bank and M&M, all surging between 2-3%.
ITC was among the top losers on the Sensex down 1.5% after the proposed hike in excise duty by 18% on cigarettes. Other Sensex losers include Bharti Airtel, Reliance, TCS and HDFC Bank.
Healthcare stocks Dr Reddy's Labs and Sun Pharma were down after no allocations were made in the Budget towards the health sector.
Hero MotoCorp is trading 1.7% down, in an otherwise firm market on reports that the workers at company’s Gurgaon unit went on hunger strike from Thursday to demand higher wages.
Among other shares, Suzlon Energy is the top gainer from the mid-cap pack, up 17% to Rs 18.75 after hitting a new low yesterday on promoter's stake sale news. The stock had tanked 44% on Budget day. CORE Education & Technologies has zoomed over 11% at Rs 61.
United Spirits has rallied 6% to Rs 1,943 after Competition Commission of India (CCI) has approved UK major Diageo Plc's proposed majority stake purchase in the company.
On the losing side, Strides Arcolab is the top loser from Sensex pack, down nearly 6%. The company has entered into a definitive agreement for the sale of its specialties subsidiary, Agila Specialties Private Limited, to US-based Mylan Inc
Broader markets are trading firm in line with the benchmarks.
