Sensex jumps 243 points on GAAR move, rate cut talk

A deferral of the controversial General Anti Avoidance Rules (GAAR) that is expected to boost sentiments of foreign investors by three years helped the benchmark Sensex gain 243 points, or 1.2%, at 19,906 — the highest in the last 24 months.

A deferral of the controversial General Anti Avoidance Rules (GAAR) that is expected to boost sentiments of foreign investors by three years helped the benchmark Sensex gain 243 points, or 1.2%, at 19,906 — the highest in the last 24 months.

HT Image

A dip in inflation fuelling rate cut hopes and strong profit growth by Tata Consultancy Services also aided sentiments.

The Nifty shot up by 72.8 points, or 1.2%, at 6,024.

“The market sentiment was boosted by finance minister P Chidambaram’s decision to defer implementation of GAAR from April 2014 to 2016,” said Sanjeev Zarbade, vice-president, private client group research, Kotak Securities said. “Infosys shares extended its rally on Monday by around 4%. Post December inflation number, expectations of a rate cut have further strengthened.”

DLF, HDIL, Essar Oil, Union Bank and Indiabulls Finance remained the biggest gainers on Monday with 7.7%, 5.8%, 5.7%, 5.25 and 5.1% jump. While JP Power, Pidilite Industries, Bajaj Finance, MCX and Maruti Suzuki were the biggest losers with a fall of 4.7%, 2.7%, 2.4%, 1.9% and 1.7%.