Nifty breaks above 6,000 on inflation, GAAR

The BSE Sensex jumped nearly 200 points while the broader Nifty traded above the key 6,000 mark on Monday. A spate of positive news coupled with a rebound in IT stocks after Infosys Q3 earnings supported Indian stock markets today. At 1.10 p.m., the Sensex traded 186 points or 0.94 per cent higher while the Nifty traded 53 points higher at 6,004. The rupee gained 18.5 paise to the dollar and traded at 54.57. The government deferred implementation of controversial rules on tax avoidance to April, 2016, Finance Minister P. Chidambaram said. The finance ministry had earlier said it would implement GAAR (General Anti-Avoidance Rules) from April, 2014. The move is likely to assuage foreign investor sentiments, who are opposed to the controversial rule. (Read: GAAR implementation deferred to 2016) Besides, headline inflation eased to 7.18 per cent in December against expectations of a rise. This is likely to pave way for the Reserve Bank of India to cut interest rates later this month. (Read: December inflation slows to three-year low) Rate sensitive stocks - banks and realty - saw sharp gains. The BSE Realty index was up 3.4 per cent. DLF, India's biggest developer, traded with 6 per cent gains and was the top Nifty gainer. The stock also gained on account of an upgrade to "overweight" by JPMorgan. (Read) Infosys shares rose 3 per cent on the back of multiple brokerage upgrades, following the strong quarterly performance on Friday. Barclays raised Infosys to "overweight" from "equal weight", while J.P.Morgan raised its rating from "neutral." (Read: Infosys upgraded) TCS, India's largest IT outsourcer, traded with nearly 2.5 per cent gains ahead of reporting its quarterly earnings later today. Indian markets have seen extended consolidation after the sharp up move that took the Sensex to a two-year high earlier this month. Independent analyst Sarvendra Srivastava said the weekly close has been disappointing though prices are within the 5,940-5,965 support range. 5,940 and 12,500 are crucial supports for Nifty and bank Nifty respectively, he added.. . (With inputs from Reuters)

Nifty breaks above 6,000 on inflation, GAAR

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