Sensex zooms: Investors richer by Rs 1.17 trillion

Helped by a rally in the stock market where the Sensex surged by a whopping 439 points, its biggest single-day gain in 2012 so far, investors became richer by Rs 1.17 lakh crore on the back of clarity on tax-avoidance rules and bullish global sentiment.

The BSE benchmark index settled at 17,429.98 - a level last seen in April 19 -- higher by 439.22 points, or 2.59 per cent.

Following the surge in the market, the total investor wealth moved up by Rs 1.17 lakh crore to Rs 61.52 lakh crore.

Across the market, around 1,870 stocks rose. All the 13 BSE sectoral indices also ended in green in range of 1-3 per cent.

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Among the 30-share Sensex stocks, as many as 29 counters ended higher with gains led by Jindal Steel that rose 8.74 per cent, followed by Tata Power, ICICI Bank and Bhel which rose 5-6 per cent each.

The 50-share National Stock Exchange index Nifty spurted by 129.75 points, or 2.52 per cent to 5,278.90.

Analysts said the sentiments became buoyant as market players cheered Finance Ministry's proposal that the controversial General Anti-Tax Avoidance Rules (GAAR) would not be applicable below a particular limit.

"The underlying bias has improved but further gains will hinge on policy interventions by the Centre to restore investor confidence. Any encouraging development out of Europe or any other developed markets will also support Indian stocks.

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"The euro-zone crisis continues to keep investors on the edge. Therefore, all eyes are on the EU summit which could throw up some more positive initiatives to tackle the two-and-a-half-year-old debt crisis," Amar Ambani, Head of Research, IIFL said.

Sentiment also improved on reports from Europe suggesting a new plan is being worked out to support the ailing banks of the debt-ridden trading bloc.

Asian indices, including Hong Kong, Taiwan, Japan and China, closed with gains of up to 2 per cent while European indices were trading 1-2 per cent higher in early trade on the news.

Sensex has gained nearly 550 points in the last four days coinciding with Prime Minister Manmohan Singh taking over charge of Finance portfolio and signaling speedy revival of the slowing economic growth.