Stocks surge after SEBI's assurance

MUMBAI: SEBI chief, GN Bajpai's assurance helped stock market gaining grounds today. The sensex witnessed a drop of over 120 points within minutes of opening but closed at points 4945.48, up by 101.64 and the Nifty closed up 32 points at 1550.15.

The brokers continued their protest today also on the introduction of turnover tax. The Finance Minister will meet up with the brokers on July 12 to discuss the implications of the turnover tax. SEBI has assured that turnover tax will be applicable only after the finance bill would be passed. SEBI's assurance combined with hopes of a possible reconsideration on the tax seems to have buoyed the market.

Telecom stocks showed some gains following a hike in FDI cap to 74 percent from 49 percent. Bharti, MTNL, Shyam Telecom and Tata Tele services traded in green. Most of the frontline as well as the second rung technology shares gained.

Mphasis BFL is trading firm after touching an intra-day high of Rs 293. The company posted a much higher-than-expected 81 percent rise in consolidated quarterly profit. FIIs appear enthused by new announcements, and are picking up stocks.

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