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BSE Sensex breaches 20,000 for first time in two years

The BSE Sensex breached the psychologically level of 20,000 for the first time since January 2011, but retreated below that in later trading.

Markets have witnessed some momentum after the government said on Monday that it will delay the implementation of controversial rules on tax avoidance by two years to 2016.

"The indication from the government seems to suggest attracting capital flows is imperative for the economy and to fund the current account deficit," said Dhananjay Sinha, co-head of institutional research at brokerage Emkay Global.

Independent analyst Sarvendra Srivastava said markets are unwilling to go down below trend supports and investors should add positions past the 6,060 mark.

The rally in tech stocks continued after TCS reported better than expected profits for the December quarter. Shares in TCS, India's biggest IT outsourcer, jumped over 4 per cent in early trade.

Other IT stocks - HCL Tech and Wipro - traded with 0.5-1 per cent gains at 09.20 a.m. However, Infosys saw some profit booking after two days of strong gains. The stock traded 0.3 per cent lower.

Global cues:

Japan's Nikkei share average climbed 1 percent to a 32-month high on Tuesday, driving the benchmark further into "overbought" territory, as persistent weakness in the yen boosts demand for exporters' shares.

The Nikkei rose 110.23 points to 10,911.80, setting its sights on the 11,000-mark, a level not seen since late April 2010. It rose 1.1 percent last week to log its ninth straight week of gains and its longest such winning run since 1988. Monday was a public holiday in Japan.


(With inputs from Reuters)