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%.