Sensex ends at 17429, up by 457 points

Mumbai: The BSE benchmark sensex continued its upward march for the fourth week in a row by surging over 457 pts to settle the week at about 2-1/2-mth high of 17,429.98 due to all-round buying on the back of clarity on tax-avoidance rules and upbeat global sentiment. The sensex ended lower over 90 points on Monday after Reserve Bank announced some measures to stem the rupee fall which fell short of market expectations.

RBI hiked FII limit in government bonds to USD 20 billion while allowing up to USD 10 billion via overseas borrowings route by domestic corporates for refinancing their rupee loans. The steps are expected to curb rupee`s fall, which has lost over 26 per cent in last one year. But, it has gained nearly 550 points in the last four days coinciding with Prime Minister Manmohan Singh taking over charge of Finance portfolio and signalling speedy revival of the slowing economic growth.

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 sentiment was mainly boosted on Friday when reports from Europe suggested that a new plan is being worked out to support the ailing banks of the debt-ridden trading bloc, resulting the sensex to gain by a whopping over 439 points.

Good capital inflows amid smart recovery in the rupee value and lower global crude oil prices too kept the market in positive terrain. Foreign Institutional Investors (FIIs) infused over Rs 1,549 crore in the week, including provisional data of June 29. The rupee bounced back with a vengeance during the week by 154 paise or 2.69 pct to 55.61 on Friday, after registering its all-time intra-trade low of 57.31 on June 22 and also logging a life-time closing low of 57.15 on the same day, giving some relief to the market, mainly import based companies.