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Nifty ends above 5,700, up 27 pts

A day after Budget-triggered panic selling spooked the market, the NSE benchmark index CNX Nifty recovered some lost ground and rose 27 points to close above the 5,700 level as a clarification on tax residency certificates (TRCs) calmed investor fears.

BT Online Bureau | March 1, 2013 | Updated 23:20 IST

A day after Budget-triggered panic selling spooked the market, the NSE benchmark index CNX Nifty recovered some lost ground and rose 27 points to close above the 5,700 level as a clarification on tax residency certificates (TRCs) calmed investor fears.

Frantic selling by foreign institutional investors (FIIs) on Budget day, which coincided with F&O expiry, shook the bourses with the key indices hitting multi-month lows on FII tax clause in the Finance bill and some other proposals.

Tightening rules for foreign investors claiming benefit of tax treaties, Finance Minister P Chidambaram on Friday said the TRC issued by Mauritian authorities will not be enough to claim tax benefits on investment profits in India under the Double Taxation Avoidance Agreement (DTAA).

FIIs sold shares worth Rs 1,318 crore on Thursday, as per provisional data with stock exchanges.

After a modest positive opening amid disappointment with the Budget and lacklustre global cues, the market traded in a tight range in early hours. Select buying in beaten down bluechips and short-covering supported the early momentum.

The overall sentiment remained weak. The worse-than-expected Q3 GDP figure, which showed a modest 4.5 per cent growth, and a spike in retail inflation to 11.62 per cent for January too dampened the mood of the market.

The market regained some strength in the afternoon after the Finance Ministry issued clarification on TRCs which soothed the nerves of anxious investors. Buying was seen in financials, auto, FMCG, oil & gas, infra and pharma scrips.

The 50-share index oscillated between a high of 5,739.45 and a low of 5,679.90 before ending at 5,719.70, a gain of 26.65 points, or 0.47 per cent, from last close.

Maruti, JP Associates, RInfra, BPCL, Power Grid, L&T, Jindal Steel, Cipla, Tata Power and HDFC were among the top Nifty gainers. Key losers included DLF, Bharti Airtel, IDFC, Siemens, Cairn, TCS, ITC, HeroMoto, HDFC Bank and ACC.

Turnover in the cash segment fell sharply to Rs 12,142.79 crore from Rs 21,996.20 crore yesterday. A total of 7,463.76 lakh shares changed hands in 62,72,539 trades. Total market capitalisation stood at Rs 64,03,256 crore.

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