Sensex surges 479 points, rebounds from 4-month low

The benchmark BSE Sensex today rose by 479 points to recover from near four-month low and settled at 27,490.59 on government's clarification on MAT and a rise in auto stocks on promising monthly sales data.
Across-the-board buying at the beginning of May series, rallies in refinery stocks and the passing of Finance Bill, 2015, helped the index to rise the most in over a month, brokers said.
Finance Minister Arun Jaitley last week had said all capital gains from sale of securities as well as royalties, interest, technical services fee earned by foreign companies will be exempt from minimum alternate tax (MAT), if the normal tax rate on such income is lower than 18.5 per cent.

Brokers also attributed today's rebound to value-buying from an "over-sold" position after persistent fall in stock prices in the April series as participants snapped recently beaten down bluechip stocks.
The 30-share BSE index opened on a strong footing and gathered momentum to test the day's high of 27,537.85 before settling 479.28 points or 1.77 per cent higher at 27,490.59.
The previous best one-day gain was on March 30 when the Sensex had rallied by 517.22 points.

The 50-share NSE Nifty recaptured the 8,300-level to hit a high of 8,346.00 points, before settling 150.45 points or 1.84 per cent higher at 8,331.95. This is the best single-session gain in two months for the index.

ONGC emerged top gainers among Sensex stocks by surging 7.57 per cent, to close at Rs 327.65 on speculation that the government will bear the entire burden of fuel subsidy.
Among 30 Sensex shares, 27 ended in positive zone, while Tata Motors, ICICI Bank and L&T ended lower.
Robust sales in April by auto companies including Maruti Suzuki and Bajaj Auto too had positive impact.
Meanwhile, manufacturing sector output eased in April after a solid rate of growth witnessed in the previous month.
Buying activity was also extended to small and midcap sectors. The BSE smallcap index surged 2.06 per cent and Midcap index rose by 1.28 per cent.

Globally, Asian markets ended mixed and European markets were trading positive in their early trade after the biggest decline this year as a guage of manufacturing increased more than initially estimated.
Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth Rs 3,157.61 crore last Thrusday, as per provisional data.