Markets embrace Economic Survey, key indices rise

Mumbai, July 2 (PTI) The stock markets cheered the
recommendations in the Economic Survey tabled in Parliament
Thursday with the Sensex rebounding by over 115 points on
fresh buying in heavyweight stocks.

The Bombay Stock Exchange benchmark index, which fell by
over 70 points in late morning trade, rebounded by 118.88
points to 14,764.35 points soon after the Survey was tabled in
Parliament by Finance Minister Pranab Mukherjee.

Meanwhile, the wide-based National Stock Exchange index
Nifty moved up by 42.75 points to 4,383.65 points.

Marketmen said trading sentiments got a boost following
the Survey recommended phasing out all cesses and surcharges
on taxes and securities transaction tax, fringe benefit tax
and introduce a new income tax code.

The Survey also asked for rationalising the dividend
distribution tax so that dividend is taxed in the hands of
receiver. Surcharge at a rate of 10 per cent is levied on
those earning at least Rs 10 lakh per annum and corporate
income tax.

Besides, stocks of companies in oil refining business
were in demand following a hike in diesel and petrol prices
last evening. PTI