A benchmark index of Indian equities markets jumped 2.24 percent in the late afternoon session Friday led by European Union (EU) leaders' proposals for reviving the economy in the Eurozone and clarifications on the General Anti Avoidance Rules (GAAR).
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,134.61 points, was trading at 17,372.15 points around 2:20 p.m., up 2.24 percent or 381.39 points from its previous close at 16,990.76 points - hitting its highest levels since May 2.
Positive news from Europe led to the bullish market sentiments as the Eurozone leaders Friday agreed to take emergency action to bring down Italy's and Spain's spiralling borrowing costs.
The two-day European Union summit which begun June 28 in Brussels is deliberating on how to prevent the Eurozone from falling apart.
As per the GAAR directives announced Thursday evening, the tax evasion rules will be invoked in cases where it was found that the entity had taken the benefits of tax avoidance treaties. A clarificatory note released by the Prime Minister's Office said that Manmohan Singh has not seen the draft guidelines and would take a final call on the issue after receiving feedback from the stakeholders.
The wider 50-scrip S&P CNX Nifty of the National Stock Exchange was trading 2.09 percent higher at 5,256.75 points.
The BSE capital goods index was up 346.86 points, the power index was up 59.25 points and the metal index was up 290.55 points.
Major Sensex gainers were Jindal Steel, up 5.58 percent at Rs.455.85; Maruti Suzuki, up 5.14 percent at Rs.1,176; BHEL, up 4.77 percent at Rs.231.75; Larsen and Toubro, up 4.28 percent at Rs.1398.55; Sterlite Inds, up 4.09 percent at Rs.101.85.
The only Sensex loser was Bharti Airtel trading down 0.15 percent at Rs.303.