Domestic equity benchmark BSE Sensex rallied over 700 points while NSE Nifty reclaimed 11,000-level in afternoon trade on Monday after the government rolled back the enhanced surcharge on foreign portfolio investors (FPIs), and unveiled a slew of measures to boost the economy.
— CNBC-TV18 (@CNBCTV18Live) August 26, 2019
The 30-share index was trading 715.57 points, or 1.95 percent, up at 37,416.73 at around 1.45 pm.
The broader Nifty surged 194.60 points or 1.8 percent to 11,023.95 in the afternoon trade.
Sensex zoomed over 600 points to 37,363.95 while Nifty jumped 170.95 points to reclaim 11,000-mark in the opening session on Monday. The 30-share index, however, pared some gains as investors began booking profits at higher levels. Later, the index slipped 160 points to 36541.10.
In the previous session, the BSE barometer closed higher by 228.23 points or 0.63 percent at 36,701.16, and the Nifty rose 88 points or 0.82 percent to settle at 10,829.35.
Top gainers in the Sensex pack included Yes Bank, HDFC, HDFC Bank, L&T, Bajaj Finance ICICI Bank, Mahindra & Mahindra, Bharti Airtel and Tech Mahindra rallying up to 8.44 percent.
On the other hand, Hero MotoCorp, Sun Pharma, Tata Steel Power Grid and Bajaj Auto fell up to 1.95 percent.
Giving in to the demands of overseas investors, Finance Minister Nirmala Sitharaman on Friday, after market hours, announced a 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 $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.
The rupee, meanwhile, depreciated 33 paise against its previous close to trade at 71.99 in early session.
"The Finance Minister has announced a slew of measures that will go a long way in addressing the expectations of investors and equally importantly, improving consumer confidence," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
In large part, financial markets sold off on a disappointing budget. Investors will draw comfort from the measures announced today and the process for growth recovery has started, he added.
Elsewhere in Asia, bourses tanked after Donald Trump fuelled the trade war with China by imposing more tariffs on the nation's imports.
Exchanges in Hong Kong, Korea, Shanghai and Japan were trading on a significantly lower in their respective late morning sessions.
Global oil benchmark Brent crude was trading 0.99 percent lower at 58.22 per barrel.
— With PTI inputs
Updated Date: Aug 26, 2019 14:52:54 IST