Updated on Thursday, July 02, 2009, 11:15 IST

Mumbai, July 02: The stock markets cheered the recommendations in the Economic Survey tabled in Parliament on Thursday with the Sensex rebounding by over 115 points on fresh buying in heavyweight stocks.

The Bombay Stock Exchange benchmark index, which fell by over 70 points in late morning trade, rebounded by 118.88 points to 14,764.35 points soon after the Survey was tabled in Parliament by Finance Minister Pranab Mukherjee.

Meanwhile, the wide-based National Stock Exchange index Nifty moved up by 42.75 points to 4,383.65 points.

Marketmen said trading sentiments got a boost following the Survey recommended phasing out all cesses and surcharges on taxes and securities transaction tax, fringe benefit tax and introduce a new income tax code.

The Survey also asked for rationalising the dividend distribution tax so that dividend is taxed in the hands of receiver. Surcharge at a rate of 10 per cent is levied on those earning at least Rs 10 lakh per annum and corporate income tax.

Besides, stocks of companies in oil refining business were in demand following a hike in diesel and petrol prices last evening.

Bureau Report