Markets end higher as worries over tax on P-Notes ease

Benchmark share indices ended higher on the last trading day of financial year 2011-12 after the Finance Minister Pranab Mukherjee clarified that P-Notes will not be taxed in India.

Further, the Reserve Bank of India's move to inject 10,000 crore through open market operations today in an effort to boost liquidity in the banking system also improved sentiment.

The 30-share Sensex provisionally ended up 312 points at 17,370 and the 50-share Nifty ended up 103  points at 5,282.

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(Updated at 14:29hrs)

Markets continue to move upwards as investors bought shares from the metal and realty pack. The Sensex touched a high of 17,365 and is now trading up 298 points at 17,356. Nifty is up 88 points at 5,266.

Markets would now be looking at the Q4 corporate earnings season, which is set to begin in April, for directions.

Asian markets ended mixed with the Nikkei and Hang Seng dropping 0.3% each. Meanwhile, Shanghai Composite added 0.5% at 2,263.

Meanwhile, finance minister Pranab Mukherjee said today that holders of participatory notes, or P-notes, will have no tax liability and a clarification on these notes will be issued in due course.

P-notes are issued by foreign portfolio investors registered with the Indian market regulator, or by their sub-accounts, to investors overseas and they offer the buyer anonymity.

BSE metal index gained 2.4% to 11,324 ahead of China's manufacturing Purchasing Mangers' Index data. Realty index held on to gains and was up 2.3%, followed by bankex and PSU.

Heavyweights - Reliance and ICICI Bank have advanced in trades. Together the stocks account for a 86 points rally on the Sensex. Metal shares - Hindalco and Tata Steel added 3-4% each at Rs 130 and Rs 468, respectively.

Power generation stocks rose in afternoon trades. Tata Power added 3.3% at Rs 101. Reliance Power is up 1.5% at RS 117. Birla Power Solutions has surged 2% in trades.

NTPC has frozen expansion of its gas-based projects due to non-availability of the fuel, reports suggest. Shares of NTPC is up 0.4% at Rs 163.

Reliance ADAG group shares were also in the green. RCOm has added 1.8%, Reliance Infra has moved up 2.7%, Reliance Media Works is up 2% in trades.

Larsen & Toubro added 2% at Rs 1,309 won new orders valued over Rs 1875 crore across various business segments in March 2012.

PSU OMCs gained as crude oil futures dropped to a six-week low. HPCL has surged 5% to Rs 298. BPCL and IOC are up 1-3% each.

ONGC added 1.2% at Rs 264 reports the state-run oil exploration major will sign an initial agreement with ConocoPhillips on the exploration and development of shale-gas reserves and deep-water oil and gas blocks.

Among individual stocks, Coal India has moved up 2% at Rs 340. Reports suggest that the company has approved the new draft fuel supply pact, but with riders.

The government will look into the possibility of disinvestment of Andrew Yule and Company’s stake in Tide Water Oil. The stock has gained 2.4% at Rs 7,430.

Essar Oil has completed the expansion of its Vadinar oil refinery in Gujarat and expects revenue to grow 35 per cent in 2012-13. The stock is up 1% at Rs 53.20.

Ashok Leyland has initiated talks with foreign players for technological partnerships to foray into the aerospace business. Ashok Leyland has advanced 3.6% at Rs 30.

The promoters and promoter group of Chemplast Sanmar are planning to buyback shares worth 90.60 crore rupees. Shares of Chemplast has slumped 4.5% at Rs 6.22 after touching a high of Rs 6.68 in morning trades.

BSE market breadth is positive. Out of 2,842 shares traded, 1,848 shares have advanced while 873 shares have declined.