Market Synopsis

Yesterday, India slashed the rate of tax levied on the interest that foreign investors earn
on their investments in local bonds to 5% from 20%.    The new rate will be effective
from June 1, 2013 to May 31, 2015 to FIIs and individual investors in govt. securites
and rupee-denominated government and corporate bonds.    Earlier, the 5% tax rate on
foreign investments was applicable to long term infrastructure bonds.    But, with the
latest decision by the govt., the lower rate will be extended to all categories of govt. and
corporate bonds.    Market is seeing this measure as another step taken by the govt. at
addressing the Current Account Deficit.
 
INR closed at 53.80 versus the USD on Tuesday after appreciating 43 paise over Monday's close.   
Market has responded positively to the govt.'s measure.

Yesterday, Unilever announced its decision to go for a strategic stake in Hindustan
Unilever Limited from 52.5% to 75%.    The market received the news cheerfully.
The stock price shot up by 17% yesterday.

All these are adding up to the already prevailing positive sentiment in the market.