FinMin assurance, value-buying helps Sensex recover 57 pts

Shrugging off Budget blues, the BSE benchmark Sensex today bounced back from three-month lows to end nearly 57 points higher at 18,918.52 on value-buying after Finance Ministry's promise to address concerns over Tax Residency Certificate.
The Sensex, which had tumbled 291 points in the previous session on hike in taxes and FII concerns in Budget, opened firm and rose to an intra-day high of 18,988.97 before ending at 18,918.52 -- a gain of 56.98 points, or 0.30 per cent.
On similar lines, the National Stock Exchange Nifty rose by 26.65 points, or 0.47 per cent to 5,719.70.
Finance Ministry earlier today sought to assure worried investors saying their concerns on Tax Residency Certificate (TRC) for claiming treaty benefits will be 'suitably' addressed during discussion on Finance Bill in Parliament.

Good auto sales attracted investors to Maruti Suzuki that jumped 5 per cent. Bajaj Auto and M&M also rose smartly.
HDFC, L&T, HUL, Cipla, Jindal Steel gained 2-3 per cent.

Buying activity was more confined to stocks of consumer durables, capital goods, auto and banking, while IT stocks like Infosys gained on weakening rupee. The domestic currency was last trading at 54.92 versus US dollar, up 1 per cent.
Banking stocks rose on hopes that slowing growth with GDP expansion falling to 4.5 per cent in Q3 might force RBI to cut rates sooner, said brokers. ICICI Bank rose 1.54 per cent. Lenders had plunged yesterday on concerns about liquidity in banking system after FY'14 borrowing target was unveiled.

Globally, a better tend in the Asian region and higher opening in Europe further supported the domestic market.
However, refinery stocks fell on worries that cost sharing recovery mechanism will be withdrawn after planned move to a revenue-sharing policy, said traders. Stocks of Reliance Industries and GAIL declined while ONGC rose.
Sectorally, consumer durable sector gained the most by 3.20 per cent, followed by capital goods 1.62 per cent and auto sector index 1.50 per cent.