Investors richer by Rs 1.17 trillion as Sensex surges 439 points
New Delhi: Helped by a rally in the stock market where the Sensex surged by a whopping 439 points, its biggest single-day gain in 2012 so far, investors became richer by Rs 1.17 lakh crore on the back of clarity on tax-avoidance rules and bullish global sentiment.
The BSE benchmark index settled at 17,429.98 - a level last seen in April 19 -- higher by 439.22 points, or 2.59 percent.
Following the surge in the market, the total investor wealth moved up by Rs 1.17 lakh crore to Rs 61.52 lakh crore.
Across the market, around 1,870 stocks rose. All the 13 BSE sectoral indices also ended in green in range of 1-3 percent.
Among the 30-share Sensex stocks, as many as 29 counters ended higher with gains led by Jindal Steel that rose 8.74 percent, followed by Tata Power, ICICI Bank and Bhel which rose 5-6 percent each.
The 50-share National Stock Exchange index Nifty spurted by 129.75 points, or 2.52 percent to 5,278.90.
Analysts said the sentiments became buoyant as market players cheered Finance Ministry's proposal that the controversial General Anti-Tax Avoidance Rules (GAAR) would not be applicable below a particular limit.
"The underlying bias has improved but further gains will hinge on policy interventions by the Centre to restore investor confidence. Any encouraging development out of Europe or any other developed markets will also support Indian stocks.
"The euro-zone crisis continues to keep investors on the edge. Therefore, all eyes are on the EU summit which could throw up some more positive initiatives to tackle the two-and-a-half-year-old debt crisis," Amar Ambani, Head of Research, IIFL said.
Sentiment also improved on reports from Europe suggesting a new plan is being worked out to support the ailing banks of the debt-ridden trading bloc.
Asian indices, including Hong Kong, Taiwan, Japan and China, closed with gains of up to 2 percent while European indices were trading 1-2 percent higher in early trade on the news.
Sensex has gained nearly 550 points in the last four days coinciding with Prime Minister Manmohan Singh taking over charge of Finance portfolio and signaling speedy revival of the slowing economic growth.
Fiscal deficit touches 27% of BE in first 2 months of FY'13
New Delhi: The central government's fiscal deficit touched 27 percent of the the budget estimates (BE) in the first two months of the current financial year, despite increase in revenue receipt.
In absolute terms, the fiscal deficit in the April-May period of the current fiscal stood at Rs 1.41 lakh crore, as per the latest data of the Controller General of Accounts (CGA).
For the full 2012-13 fiscal, the government has budgeted the fiscal deficit at Rs 5.13 lakh crore, or 5.1 percent of GDP.
Last fiscal during the same period, the fiscal deficit was 32 percent of the BE amounting Rs 1.3 lakh crore.
Overall while the government was able to increase its revenue receipts, on the expenses front too it was able to cut down, mainly the plan expenditure.
The revenue receipts in the two months period stood at Rs 47,897 crore, which was 5.1 percent of the budget estimates. Total expenditure of the government was Rs 1.90 lakh crore, or 12.8 percent of the budget estimates.
The revenue deficit was 34 percent of the budget estimates at Rs 1.18 lakh crore and the primary deficit was 50 percent of the budget estimates in the April-May period.