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Sensex rises over 250 points

Fri 09 Aug 2019, 10:48:45
Mumbai: Domestic equity benchmark BSE Sensex jumped over 250 points in early session on Friday led by gains in banking and energy stocks amid reports that the government is likely to roll back higher surcharge on foreign portfolio investors.

After surging 285 points in opening trade, the 30-share index was trading 238.59 points or 0.64 per cent higher at 37,565.95 at 0945 hours; and the broader Nifty too rose 73.10 points or 0.66 per cent to 11,105.55.

In the previous session on Thursday, the 30-share index finished at 37,327.36, showing a jump of 636.86 points or 1.74 per cent. While, the NSE Nifty climbed 176.95 points or 1.63 per cent to 11,032.45.

Top gainers in the Sensex pack during early trade included PowerGrid, Vedanta, HDFC twins, Hero MotoCorp, RIL, NTPC, Bajaj Finance, L&T and HCL Tech, rising up to 2 per cent.

While, Tata Motors, M&M, TechM, ITC, Bharti Airtel, Yes Bank, Infosys and TCS fell up to 1.41 per cent.

Trading sentiment received a much-needed boost after reports emerged on Thursday stating the Centre is likely to withdraw higher surcharge on foreign portfolio investors (FPIs), introduced in the Budget, and may also take a re-look at the long-term capital gains tax.

Reports also suggest that leading overseas investors will meet finance ministry officials on Friday as the government seeks to ease concerns over dwindling FPI inflow.

Foreign investors have been on a selling spree since the Budget was presented in July, putting pressure on both the capital markets and the rupee.

FPIs sold shares worth a net of Rs 437.39 crore on Thursday, while domestic institutional investors bought shares worth Rs 291.29 crore, provisional data showed.

Market has got a a breather due to the expectation that the government is likely to be lenient on higher surcharge on FPIs. Additionally, prospects of lower interest rate going forward and strength in rupee will ease liquidity crunch situation, said Vinod Nair, Head of Research, Geojit Financial Services.

Meanwhile, the rupee appreciated 17 paise against its previous close to trade at 70.51 in early session.

Brent crude futures, the global oil benchmark, slipped 0.26 per cent to trade at 57.23 per barrel.

Elsewhere in Asia, Hang Seng, Kospi, Shanghai Composite Index and Nikkei were trading on a mixed note in their respective late morning sessions.

While, bourses on Wall Street ended higher on Thursday.




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