Sensex, Nifty End Higher On Hopes Of Tax Waiver For FPIs

Indian shares rose on Friday to extend strong gains from the previous session amid optimism the government will announce some concrete measures to reverse the pessimism and lift investor confidence.

There was talk of a rollback of the higher tax surcharge on foreign portfolio investors (FPIs). In addition, speculation was rife that the government could approach the Goods and Services Tax (GST) Council to relieve the auto-industry from tax payment for three-six months.

With the real estate sector in the country passing through tough times because of liquidity crunch, the government is expected to come up with a solution to address the issue.

The benchmark S&P BSE Sensex hit as high as 37,807.55 before giving up some gains to end the session up 254.55 points or 0.68 percent at 37,581.91.

The broader NSE Nifty index climbed 77.20 points or 0.70 percent to 11,109.65.

Indiabulls Housing Finance shares soared as much as 14.8 percent in reaction to reports that its founder Sameer Gehlaut will relinquish all control and rights in the proposed bank to be formed after a merger with Lakshmi Vilas Bank.

Bajaj FinServ, Maruti Suzuki, Titan Company and Eicher Motors rallied 3-5 percent. Sobha climbed 2.5 percent after unveiling its June quarter results.

Yes Bank slumped 7.9 percent after announcing a management reshuffle. The bank also launched a qualified institutional placement to raise around Rs 2,000 crore.

Coal India, Hindalco, Tech Mahindra and Cipla dropped 2-4 percent.

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