The Sensex, which was down more than 300 points in mid noon trade closed higher by 81 while the Nifty closed the day higher by 27 points at 5114 points.

Among the stocks that gained today were State Bank of India, Larsen and Toubro, ICICI Bank and Axis Bank. Among the shares that lost ground today were Cairn India, HCL, Jaiprakash Associates and Dr Reddy's Laboratories.

Today's rally was purely drive by the FM's clarification on GAAR despite sharp drop in indices across the globe. European markets in fact were trading sharply lower with CAC, DAX and FTSE all trading lower by 1 to 2%.

Marketmen expect the rally in stocks to continue, as there may be some buying from FIIs following today's clarifications.

Foreign investors, particularly P-note holders were worried that the General Anti Avoidance Rules would tax them and hence have been on the sidelines for sometime.

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