BULLS ARE BACK

Buoyed by a robust start to the U.S. holiday shopping season, bulls at Dalal Street are currently riding high on the hopes of Europe coming up with some concrete steps this week towards activating a crucial euro zone bail-out fund amidst much hyped reports stating International Monetary Fund's (IMF) possibility of lending a helping hand to Italy financially. A report on Sunday from the Turin daily La Stampa, stated that the IMF could provide financial assistance between Euro 400 to Euro 600 billion to Italy to allow Italian Premier Mario Monti about 12 to 18 months to introduce measures to bolster market confidence in the country's ability to repay its debt. With a European Union summit looming on December 9, another factor that has seen the return of confidence in market participants has been the better-than-expected retail sales during the Thanksgiving weekend in the United States. According to the National Retail Federation, sales during the holiday weekend climbed 16% to a record $52.4bn, that has raised hopes of a robust demand for the Christmas and New Year holiday season from the world's biggest economy.  Further, positive leads from of Asian pacific stocks have also aided the early rally. However, the US markets in a short trading session on Friday closed marginally lower, the volume remained low as the traders were away for Thanksgiving holiday.
 Back home, although buying has been initiated across the board, however, stocks from rate sensitive pockets- Metal, Realty and Bankex have featured in the best list of performers, which have taken 30 share index on BSE-Sensex- higher over 300 points, above its crucial 16000 psychological level. In a similar 50 share barometer gauge of NSE-Nifty- too shot up close to 100 points to trade over 4800 level. The overall market breadth on BSE is in the favour of advances which have thumped declines in the ratio of 1574:496, while 66 shares have remained unchanged.
The BSE Sensex is currently trading at 16,009.06, up by 313.63 points or 2.00%. The index has touched a high and low of 16,021.26 and 15,888.28 respectively.  All the 30 stocks were on advancing side.
 The broader indices too gained additional traction; the BSE Mid cap and Small cap indices surged 1.31% and 1.46% respectively.
Buying was witnessed across the board. However, the top gaining sectoral indices on the BSE were, Metal up by 3.13%, Realty up by 2.40%, Bankex up by 2.02%, Power up by 1.92% and CG up by 1.89%.
Hindalco Industries up by 4.89%, Tata Motors up by 4.13%, BHEL up by 3.32%, Sterlite Industries up by 3.05% and Jaiprakash Associate up by 2.97% gained maximum traction amongst 30 share barometer index on BSE-Sensex.
Meanwhile, with the aim of encouraging Indian investment in Nepal, averting fiscal elusion, and lessening procedures for stakeholders with commercial interests in both countries, India and Nepal have signed a revised Double Taxation Avoidance Agreement (DTAA). The treaty, based on modern taxation principles and in-line with the current international environment, will replace the agreement on double taxation avoidance signed in 1987.
Finance Minister Pranab Mukherjee signed the pact with his Nepalese counterpart, Barshaman Pun 'Ananta,' in the presence of Prime Minister Baburam Bhattarai. On the sidelines Mukherjee said, 'the revised DTAA will provide tax stability to the residents of India and Nepal and facilitate mutual economic co-operation as well as motivate the flow of investment, technology and services between India and Nepal.'

The treaty includes provisions for exchange of information, support in collection of taxes between tax authorities and anti-abuse provisions. The exchange of information will extend to exchanging bank details, and could be shared with other law enforcement agencies with the consent of the information supplying country.

The agreement comes soon after the two countries signed the Bilateral Investment Promotion and Protection Agreement (BIPPA) during Bhattarai's visit to India last month. Nepal hopes that the two agreements together would encourage further Indian investment in Nepal, which in turn would lead to greater exports and help bridge the growing trade deficit with India. India accounts for more than 45% of foreign direct investment in Nepal, while two-thirds of Nepal's trade is with India.
The move has been welcomed by the private sector, as this would pave way for greater investment, transparency, and allow both countries to avail of each other's relative advantage. Given that tax rates were lower in Nepal, investors who had paid taxes in India would not have to do so in Nepal and those who paid taxes in Nepal would only have to pay the differential amount back in India.
The S&P CNX Nifty is currently trading at 4,803.45, higher by 93.40 points or 1.98%. The index has touched a high and low of 4,806.45 and 4,766.40 respectively. There were 48 stocks advancing against 2 declining ones on the index.
The top gainers of the Nifty were Hindalco up by 5.24%, Sesa Goa up by 4.61%, Tata Motors up by 4.22%, Reliance Communication up by 3.60% and SAIL up by 3.59%. On the flip side, BPCL down by 0.49% and Power Grid Corporation of India down by 0.10% were the laggards on the index.
Most of the Asian equity indices were trading in the green; Shanghai gained 0.26%, Hang Seng surged 1.87%, Nikkei 225 added 1.64%, Straits Times accumulated 1.48%, Seoul Composite soared 1.98% and Taiwan Weighted spurted 1.79%.
On the flip side, Jakarta Composite lost 0.32%, while stock markets in Malaysia remained shut in observance of Awal Muharram.