Sensex, Nifty Jump Most In 11 Weeks On Reports Government Planning Sops For Investors

Indian shares rallied in late trading on Thursday and posted their biggest gain in 11 weeks, after reports that the government was planning sops for investors, including a withdrawal of the surcharge on foreign portfolio investors (FPIs) and a re-look at the capital gains tax.

Nifty ended 1.63% higher at 11,032.45, while the benchmark BSE Sensex closed up 1.74% at 37,327.36. Both indexes logged their biggest single-day gain since March 23.

Television channel ET Now reported https://economictimes.indiatimes.com/markets/stocks/news/govt-likely-to-withdraw-higher-surcharge-for-fpis/articleshow/70585946.cms that the government might withdraw the FPI surcharge through a notification or ordinance, and that it was working on a confidence-booster package for investors that included a re-thinking on the long-term capital gains tax.

Autos and state-run banks led gains, with the Nifty auto index ending 3% higher, its best in over 11 weeks, and the public sector banks index closing up 1.73%.

HCL Technologies was the top gainer among the NSE stocks, ending up 6.7%, while Tata Steel was the biggest laggard with a drop of 4%.

(Reuters)