GAP UP START

Indian benchmarks have made a gap-up opening with Sensex gaining over 200 points while Nifty crossing the key 5,300 level quite easily in early trade, triggered by the rally in global markets after the European Central Bank announced new bond buying program called Outright Monetary Transactions. Global cues too remained jubilant as US markets surged to their highest level in over last four years overnight supported by the better domestic economic data while, Asian markets too are thrilled and most of them have made a good start, surging by over a percent on ECBs decision to an unlimited bond-purchase program. Back home, sustained buying in all the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 17,600 and 5,300 mark respectively. The sentiments were also supported by rise in public sector oil marketing companies. The shares of BPCL, HPCL and IOC all edged higher on the buzz that government may allow OMCs to go ahead with a petrol price hike of Rs 5 per litre, as early as this week only. The broader indices were going neck to neck with benchmarks. The market breadth on the BSE was positive; there were 1,183 shares on the gaining side against 309 shares on the losing side while 39 shares remained unchanged.

The BSE Sensex opened at 17,575.79; about 229 points higher compared to its previous closing of 17,346.27, and has touched a high of 17,633.36 while low remained its opening.

The index is currently trading at 17,627.40, up by 281.13 points or 1.62%. All the 30 stocks on the Sensex were on advance side.

The overall market breadth has made a strong start with 77.27% stocks advancing against 20.18% declines. The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices surged 1.12% and 1.11% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 2.12%, Bankex up by 1.99%, Oil and Gas up by 1.83%, CG up by 1.80% and Realty up by 1.76%. While, there were no losers on the index.

The top gainers on the Sensex were ICICI Bank up by 3.78%, Tata Steel up by 3.44%, Tata Motors up by 3.05%, Hindalco up by 2.65% and Sterlite Industries up by 2.45%. While there were no loser on the Sensex.

Meanwhile, the government of India has confirmed its proposal to review the India-Mauritius Double Taxation Avoidance Convention (DTAC) bilaterally to put in place adequate safeguards to prevent misuse of DTAC and also to strengthen tax information exchange mechanism between the two countries. A Joint Working Group (JWG) comprising members from the Government of India and the Government of Mauritius has already conducted eight rounds of discussions for finding mutually acceptable solution for addressing the concerns.

The prevailing DTAC between India and Mauritius was notified in 1983. As per that, taxation of capital gains arising from alienation of shares is provided only in the residence country of the investor. Under the domestic laws of Mauritius the capital gains within the country is fully exempted from taxation. Hence, an investor routing his investment through Mauritius into India does not have to pay capital gains tax either in India or Mauritius.

This has made Mauritius an attractive route for investment by the third country residents into India through treaty abuse.

The S&P CNX Nifty opened at 5,309.45; about 71 points higher compared to its previous closing of 5,238.40, and has touched a high and a low of 5,324.40 and 5,309.20 respectively.

The index is currently trading at 5,322.60, higher by 84.20 points or 1.61%. All the 50 stocks on the Nifty were on the advance side.

The top gainers of the Nifty were ICICI Bank up by 3.54%, Tata Steel up by 3.32%, Tata Motors up by 3.13%, Sterlite Industries up by 2.62% and Hindalco up by 2.56%. While there were no loser on the index.

All the Asian equity indices were trading jubilantly; Shanghai Composite zoomed by 64.85 points or 3.16% to 2,116.77, Hang Seng surged by 422.10 points or 2.20% to 19,631.40, Jakarta Composite was up by 39.32 points or 0.96% to 4,141.73, KLSE Composite gained 5.15 points or 0.32% to 1,623.31, Nikkei 225 was up by 151.98 points or 1.75% to 8,832.55, Straits Times was up by 20.16 points or 0.67% to 3,009.39, Kospi Composite was higher by 40.18 points or 2.10% to 1,921.28, and Taiwan Weighted was higher by 93.91 points or 1.29% to 7,421.52.