The Hindu Business Line : Sensex up 92 pts on securities transaction tax debut day

STOCK markets raced to end at a near five-month closing high on the day of the debut of securities transaction tax. Brokers attribute the day's bullishness to factors including the fall in inflation rate, fall in crude oil prices and expectations that corporates would report good performance for the last quarter. Institutional and FII buying gave the market the boost it needed, said a broker.

Sensex gained 91.93 points from the opening level of 5587.46 and touched an intra-day high of 5685.68. The index gained 1.65 per cent on Friday's trade to close at 5675.54.

On the NSE, the Nifty opened on a shaky note but stabilised before climbing to a high of 1778.65, and ended at 1775.15, up 29.65 points from Thursday's close. Brokers maintain that crossing the 1750-level of Nifty is a very encouraging sign.

News of the decrease in inflation led to a smart rally in banking stocks. Bankex, the banking scrips' index on the BSE, appreciated by 1.42 per cent today. However, the highest climb was witnessed in the public sector units' index, which gained over 1.93 per cent.

Over 18.64 crore shares, worth Rs 2,003.1 crore were transacted on the BSE today. The NSE logged trades worth Rs 4,085.05 crore, constituted by transactions in 24.44 crore shares.

The securities transaction tax, announced in the Union Budget, kicked in from today. Brokers said that clarity about the tax and payment mechanism also added to the mood of the market. "The market is clear about the tax and the payment mechanism. There was no indecision in the market that can be attributed to the transaction tax," said a broker.

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