Thanks To FPI Surcharge Rollback, Sensex Soars

File Picture

Domestic equity benchmark BSE Sensex rallied over 662 points in opening session after the government rolled back the enhanced surcharge on foreign portfolio investors, and unveiled a slew of measures to boost the economy. However, at 10:15 am, BSE was down 107 points, with the NSE down 42 points.

The 30-share index, however, pared some gains as investors began booking profits at higher levels.

According to a PTI report, the index was trading 245.71 points, or 0.67 per cent, up at 36,946.87 at 0930 hours. The broader Nifty too surged over 170 points to briefly reclaim the 11,000 mark, but gave up some gains to trade 67.30 points, or 0.62 per cent, higher 10,896.65 in early trade.

In the previous session, the BSE barometer closed higher by 228.23 points or 0.63 per cent at 36,701.16, and the Nifty rose 88 points or 0.82 per cent to settle at 10,829.35.

Top gainers in the Sensex pack included SBI, M&M, HDFC twins, Yes Bank, ICICI Bank, Bajaj Finance, L&T, ITC and Axis Bank, rallying up to 3 per cent. On the other hand, Vedanta, Tata Steel, IndusInd Bank, Sun Pharma, HCL Tech and Hero MotoCorp fell up to 4 per cent.

Giving in to the demands of overseas investors, Finance Minister Nirmala Sitharaman  , after market hours, announced rollback of enhanced surcharge on foreign portfolio investors (FPIs)levied in the Budget.

The Budget proposal to hike surcharge on FPIs had spooked foreign investors, who withdrew more than USD 3.4 billion (Rs 24,500 crore) from domestic equities in July and August.

The massive capital outflows also put pressure on the rupee, which slumped to 72-level against the US dollar last week. Foreign portfolio investors sold shares worth a net of Rs 1,737.20 crore on Friday, while domestic institutional investors purchased shares worth Rs 1,548.49 crore, provisional data showed