Sensex gains 1.6 percent last week on tax reforms


Bangalore: The Sensex gained by 1.6 percent last week on the back of strong global cues and government's plans of tax reform. The Sensex added 251 points (1.6 percent) to touch the figure of 15,412. During the week, the index dropped to a low of 14,701, as the Finance Minister Pranab Mukherjee declared 161 districts of the country to be drought hit. Continuous spread of swine flu also saw the markets slipping. The new proposed direct tax code, which would lower tax rates for individuals and companies, gave further fillip to the markets and the Sensex surged to a high of 15,545 on Thursday. The index finally ended at 15,412. The Nifty ended with a gain of 99 points (2.2 percent) at 4,580. The Realty index rallied eight percent to 3,963. Metal and oil and gas indices gained as well. While the former added 4.7 percent to 12,720, the latter was up 3.2 percent to 9,869. Tata Motors zoomed 12.5 percent to 467. Oil and Natural Gas (ONGC) and DLF soared seven percent each to 1,220 and 395 respectively. Hindalco surged seven percent to 101. However, monsoon worries dragged vehicle and tractor maker, Mahindra and Mahindra, which slipped 5.5 percent to 789. Hindustan Unilever and ACC dropped four percent each to 270 and 866 respectively. Grasim, NTPC and HDFC bank also shed 2-3 percent each. The average market breadth for the week was positive, out of 20,119 stocks traded, 10,142 advanced, while 9,374 declined.