GAAR recommendations boost markets

Markets have opened on a positive note after the expert committee headed by Partahsarathi Shome on General Anti Avoidance Rule recommended postponement of the controversial tax provision by three years.

The Sensex opened higher by 60 points at 17,489 and the 50-share Nifty advanced 30 points to open at 5,289.

On the global front, the markets will react to US Federal Reserve Chairman, Ben Bernanke's, Jackson Hole speech and the ECB meet on September 6, which remains an important event as it would give details on its plan to re-launch government bond-buying programme.

Most of the Asian markets were trading on a flat note.

The Hang Seng was up 0.4% at 19,571, Shanghai Composite advanced 0.8% to 2,064 and Taiwan Weighted was up 0.7% at 7,449.

Back home, Tata Motors has advanced 2.1% at Rs 239, on reporting 12% year-on-year rise in total sales at 71,826 units in August this year.

The Tata Group company had sold total 64,078

vehicles in the same month of previous year.

Sterlite Industries, Hindalco, GAIL India, Bharti Airtel, Larsen & Toubro, Jindal Steel, ONGC, Tata Steel, NTPC, Mahindra & Mahindra and State Bank of India have also opened higher by 0.6-2% each.

On the other hand, Wipro is the top loser, down 1.5% at Rs 362. Hero MotoCorp, Coal India, Reliance Industries , Dr Reddy's Labs, HUL and Maruti Suzuki are also among the losers.

All the sectoral indices barring the healthcare index have opened in the green.

The BSE Auto index is the top sectoral gainers. It has advanced 1% or 84 points to open at 9,324.

Capital goods, metal, power, PSU, realty and IT indices have also opened higher by 0.3-0.8% each.

The broader markets are in-line with the benchmark indices.

The BSE mid-cap index has advanced 0.4% to open at 6,030.

The overall breadth is positive as 873 stocks are advancing while 425 are declining.