Sensex gains further ground on bullish global trend

STAFF WRITER 9:28 HRS IST

Mumbai, June 16 (PTI) The Bombay Stock Exchange benchmark Sensex today rose further over 111 points in early trade today as funds remained net buyers in fundamentally strong shares amid a firming global trend.

The 30-share index, which gained 74.66 points in the previous session, added another 111.05 points to 17.523.88 points in the first five minutes of trading, largely supported by stocks in Bank and Technology shares.

The wide-based National Stock Exchange index Nifty gained 33.30 points to 5255.65 points at the same time.

The market remained firm in tandem with a higher trend in the Asian region, followed by overnight gain in the US market.

Govt drops plan to tax PF, pension funds withdrawals

NEW DELHI: In a major relief to the middle class, the Centre has proposed to drop earlier suggestions of taxing withdrawals from provident funds, pension funds and pure life insurance schemes and of imposing tax on retirement and service perks given by employers.

The revisions in the Direct Tax Code (DTC), originally proposed in August 2009, also clarified that the tax exemption on interest up to Rs 1.5 lakh per annum on housing loans will continue. In a major concession to industry, the proposal to impose minimum alternate tax (MAT) on gross assets of a company was also shelved. MAT will continue to be applied on book profits as at present.

Another significant change is in the manner in which long-term capital gains on assets held for over a year will be treated. In the case of listed securities, where there is now no long-term capital gains tax, the proposal is that a proportion of the gain in the value of the securities will be added to the person’s income, with the proportion declining as the period of investment increases.

Revenue secretary Sunil Mitra said the government would entertain suggestions on the revised DTC draft till June 30. A Bill will be brought before Parliament in the monsoon session. Once passed by Parliament, the new tax code will replace the 1961 Income Tax Act and be implemented from April 1, 2011.

Under the revised DTC, retirement benefits, subject to specified limits, will be exempt unlike in the earlier version. These include gratuity, amounts received under VRS, commutation of pension linked to gratuity received or from encashment of leave at the time of retirement.

TOI

Sensex closes 74 pts up

MUMBAI: Recovering from early losses, the Bombay Stock Exchange benchmark Sensex today ended 74 points higher at a fresh six-week high on fag-end buying by funds in bluechips, particularly RCom and Sterlite Industries.

The 30-share index extended gains for the fifth straight session rising by 74.66 points to close at 17,412.83 points. The barometer had opened lower and further fell to an intra-day low of 17,249.46 points due to profit booking.

Anil Ambani group company RCom rose to a four-month high after it decided to demerge its telecom infrastructure unit, Reliance Infratel, to create an independent entity. The stocks surged by 4.27% to Rs 186.65.

Brokers said fresh buying mainly in realty and PSU sectors on the back of disinvestment news coupled with recovery in european markets boosted the market sentiment.

The government today approved disinvestment of 10% each in Coal India Ltd and Hindustan Copper Ltd, as it pushes its agenda to raise Rs 40,000 crore this fiscal through stake sales in PSUs.

The broad-based National Stock Exchange index Nifty closed at 5,222.35 points, showing a gain of 24,65 points.

In 30 BSE index components, 21 stocks closed with gains. The heaviest on the benchmark, Reliance Industries, rose by 0.19% to Rs 1,065.45, Sterlite Industries by 3.41% to Rs 675.35 and DLF Ltd by 2.99% to Rs 272.25. The three carry nearly 19% weightage on the Sensex.

MMTC Ltd, a state-run trading company, by rising 20.86% to Rs 34,476.60, the most since July 2002, after saying it will consider a proposal on June 29 to issue free shares and split its stock