Sensex rallies 637 points on tax relief buzz; Nifty reclaims 11,000-mark

Mumbai: The BSE Sensex soared 637 points while the NSE Nifty reclaimed the 11,000 level on Thursday amid reports that the government is likely to withdraw higher surcharge on foreign portfolio investors.

The rally in the fag end of the session was led by energy, oil and gas, auto and IT stocks.

 After gyrating 750 points during the day, the 30-share Sensex settled 636.86 points or 1.74 per cent higher at 37,327.36. It hit an intra-day high of 37,405.48 and a low of 36,655.41. The broader NSE Nifty also jumped 176.95 points or 1.63 per cent to 11,032.45. During the day, it hit a high of 11,058.05 and a low of 10,842.95.

Top gainers in the Sensex pack included HCL Tech, Tata Motors, M&M, Bajaj Auto, RIL, Hero MotoCorp, Yes Bank, Maruti, HDFC Bank and Bajaj Finance, which surged up to 6.43 per cent.

On the other hand, Tata Steel, IndusInd Bank and Axis Bank lost up to 3.77 per cent.

According to traders, investor sentiment got a boost following reports that the government is likely to withdraw higher surcharge on foreign portfolio investors (FPIs).

Reports also said the Finance Ministry is working on a confidence booster package for the capital markets, including taking a relook at the long-term capital gains tax.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended in the green. Equities in Europe were also trading on a positive note in their respective early sessions.

Meanwhile, the Indian rupee appreciated 23 paise to 70.66 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, rose 1.58 per cent to USD 57.12 per barrel.