Sensex gains 117 pts as HUL spurts, FM clears the air over TRC

The BSE benchmark index Sensex today gained 117 points to close at a six-week high in a volatile trade on buying mainly in HUL after Unilever announced open offer to hike stake in its Indian arm and government assuring investors TRCs will be accepted as certificate of residence.
Markets opened on a firm note and touched a high of 19,622.68 points on buying in FMCG stocks mainly in HUL after Unilever Plc said it will spend USD 5.4 billion to boost its stake in its Indian unit Hindustan Unilever to 75 per cent.
However in afternoon trade, markets slipped into the negative zone touching day's low of 19,317.38 as the World bank scaled down India's growth forecast to 6.1 per cent for the current fiscal from earlier estimate of 7 per cent.

Later, passage of the Finance Bill and Finance Minister P Chidambaram assuring foreign investors that Tax Residency Certificate (TRC) issued by a foreign government will be accepted as a certificate of residence bolstered the sentiment, brokers said.
Posting gains for the second straight day, the BSE barometer closed higher by 116.68 points, or 0.60 per cent, at 19,504.18. It had last ended at 19,570.44 on March 14, 2013.
The National Stock Exchange index Nifty also rose by 26.10 points or 0.44 per cent to 5,930.20.

"The indices begin to look wobbly with the Opposition once again disrupting Parliamentary proceedings. The only silver lining was passage of the Finance Bill and that too without a debate," brokerage India Infoline said ina note.

"Clarity in TRC led to a pullback in markets today. However, with the political tension resurfacing yet again after the Supreme Court said that sharing information by the CBI with the government on coal block allocation scam has shaken the entire process, has created more worry and instability going ahead," India Infoline Head of Research Amar Ambani said.
FMCG major Hindustan Unilever (HUL) jumped by 17.28 per cent to become the top gainer among the 30 Sensex stocks. Unilever Plc offered to acquire 48.70 crore shares, or 22.52 per cent stake, in its Indian arm at Rs 600 apiece each.