The 30-share BSE Sensex rose on Tuesday to close at its highest level in six weeks. The BSE benchmark index closed at 19,504.18, up 0.60% while the 50-share NSE Nifty gained 26.1 points, or 0.44 per cent, to end at 5,930.20.
The stock markets had opened around 1 per cent higher on euphoria over Unilever’s open offer for HUL, but fell in afternoon trade dragged down by oil and gas stocks & the unfolding events related to the “Coalgate” at the Supreme Court.
The markets rose in the last hour of trade after Finance Minister P. Chidambaram said tax residency certificates (TRCs) were sufficient to avail of tax benefits under the Double Taxation Avoidance Agreements.
The mood was set by gains in consumer goods stocks such as Hindustan Unilever after its parent made a $5.4 billion open offer at 21% premium to the last closing price. Other FMCG stocks like Nestle, Colgate Palmolive & Dabur also chipped in with handsome gains.
Sterlite Industries, Mahindra & Mahindra, Wipro & Coal India were the other notable gainers.
HDFC, HDFC Bank, Hindalco, Larsen & Toubro and Bajaj Auto led the losers.