Clarity on Mauritius, global cues stabilise Sensex | business | Hindustan Times
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Clarity on Mauritius, global cues stabilise Sensex

After falling by up to 556 points on Monday, the Sensex of the Bombay Stock exchange recovered sharply by up to 208 points intra-day on Tuesday, before closing with a gain of 53.7 points, or 0.3%, to 17,560.

business Updated: Jun 21, 2011 20:59 IST
HT Correspondent

After falling by up to 556 points on Monday, the Sensex of the Bombay Stock exchange recovered sharply by up to 208 points intra-day on Tuesday, before closing with a gain of 53.7 points, or 0.3%, to 17,560.

Strong global cues and a clarification issued by the finance ministry that it was not renegotiating with Mauritius a double-taxation avoidance agreement that has been vital in bringing huge foreign investment inflows into the country, boosted markets.

The Sensex saw strong support from Asian peers such as China, which rose 1% and indices in Hong Kong and Japan that gained 1.2% and 1.1% respectively. European markets, too, were trading in the black with markets in Germany and the UK up by 0.8% and 0.7% respectively.

The BSE IT and BSE oil & gas index rose by 1.2% and 0.9%.

Experts, however, advised caution. "Although the markets managed to overcome the anxiety over the Mauritius issue, the undercurrent remains jittery owing to a host of local-cum-overseas headwinds. One must be cautious at this juncture," said Amar Ambani, head of research at Indian Infoline.