Sensex jumps over 200 pts, snaps 2-day losing streak on MAT booster

Gaining optimism in early Wednesday trade, local shares reversed the two-day losing streak on the back of short-covering after the government accepted recommendation of a high level panel that minimum alternate tax (MAT) should not be imposed on overseas portfolio investors retrospectively. The relief to foreign institutional investors comes at a crucial time when equity markets have witnessed offloading of shares worth over Rs 17,000 crore last month, the biggest net outflow in a single month since 2008. [caption id=“attachment_2417688” align=“alignleft” width=“380”] Reuters[/caption] According to market experts, the government decision on MAT could help stem the overseas fund outflows, which has already resulted in the benchmark Sensex dropping more than 6 percent last month with global sell-off and bleak Chinese economy outlook triggering the fall. Reversing the two-day fall that saw Sensex plunge nearly 700 points, the index today opening nearly 200 points higher and rose 243 points to touch a high of 25,939.37. At 11 am, the 30-share BSE S&P Sensex was at 25,797.21, up 100.77 points, or 0.4 percent from the previous close. The broader 50-share CNX Nifty was at 7,832.85, up 47 points, or 0.6 percent. Market breadth was firm with 1,262 stocks advancing against 716 declines on BSE. On the other hand, key US share indices fell nearly 3 percent on Tuesday amid worries of the slow-down worries in the world’s second-largest economy, China. Back home, investors lapped up key frontline shares after the recent fall. Shares of TCS rose 2.4 percent to Rs 2,599, ITC jumpd 2.3 percent to Rs 322.95, Lupin gained 2.2 percent to Rs 1,903.50, Reliance Industries rose 1.6 percent to Rs 854.05 and Infosys was up 1.2 percent at Rs 1,102.40.