Sensex jumps 473 pts on firm global cues, proposal to cut STT

Snapping its 4-day losing streak, the BSE benchmark Sensex on Tuesday rebounded 473 points amid firm global trend and a proposal to cut the Securities Transaction Tax (STT).

Sensex, which had lost 1,050 points in last four trading sessions , bounced back 472.93 points to 16,524.03 as investors pinned hopes on renewed efforts by European policymakers to find a way to cut Greece's debt.

Market sentiment also improved on reports that the government is considering some tax cuts on securities transactions, and fresh inflow of foreign funds.

The broad-based NSE index Nifty rose 135.65 points to 4,971.25 led by stocks of realty, IT and refinery sectors.

Barring Cipla, all 30 Sensex stocks closed with small to handsome gains. The Sensex dropped 20 per cent this year on concern of Europe's debt crisis and slowing economic growth in the US might worsen.

The two most heaviest on the benchmark, with 20 per cent weight - Reliance industries and Infosys - ended with notable gains. RIL spurted 5.09 per cent and Infosys by 3.86 per cent.

Tata Motors also rose 5.92 per cent.

Asian stocks rebounded from their lowest level since May 2010, with the MSCI Asia Pacific Index climbing 2.8 per cent following the S&P's Index's 2.3 per cent surge in New York last night. The Sensex was also supported by higher opening in Europe.

The metal stocks were in demand as commodities advanced for the second day, the best run this month, with copper rebounding from 14-month low.