File photo. Photograph:( Reuters )
The market rallied after reports suggested that the government is likely to roll back the recently-imposed higher tax on foreign portfolio investors (FPIs)
Equity benchmark indices staged a smart recovery during second half of trading on Thursday with the Nifty closing above 11,000 mark.
The market rallied after reports suggested that the government is likely to roll back the recently-imposed higher tax on foreign portfolio investors (FPIs).
The introduction of a surcharge on higher income brackets announced in the Budget by Finance Minister Nirmala Sitharaman has led to a brisk selloff by FPIs.
At the closing bell, the BSE S&P Sensex was up 637 points or 1.74 per cent at 37,327 while the Nifty 50 edged higher by 177 points or 1.63 per cent to 11,032.
All sectoral indices at the National Stock Exchange were in the green with Nifty auto up by 3.03 per cent, realty by 1.86 per cent, IT by 1.83 per cent and PSU banks by 1.73 per cent.
Among stocks, auto companies showed gains at the bourses despite poor sales figures. Tata Motors gained by 5.62 per cent, Bajaj Auto by 3.9 per cent, Mahindra & Mahindra by 3.8 per cent and Hero MotoCorp by 3.3 per cent.
HCL Tech was up by 6.6 per cent, JSW Steel by nearly 5 per cent, heavyweight Reliance Industries by 4.26 per cent, Bharat Petroleum by 3.9 per cent, Yes Bank by 2.9 per cent and Coal India by 2.8 per cent.
However, Tata Steel slipped by over 4 per cent, pharma major Cipla by 2.7 per cent, UltraTech Cements by 2.2 per cent and Indiabulls Housing Finance by nearly 1 per cent.
Meanwhile, Asian shares struggled to rally as data showed Chinese exports rose 3.3 per cent in July from a year earlier.
Imports also declined by less than expected, suggesting some resilience to the drawn-out US-China tariff war.
MSCI`s broadest index of Asia-Pacific shares outside Japan bounced 0.6 per cent even though it was still down more than 7 per cent over the past two weeks.
The Shanghai Composite index was up by 0.93 per cent, Japan`s Nikkei edged up 0.37 per cent while Hang Seng index rose 0.48 per cent.