Sensex, Nifty Recover on Likely Tax Relief for FPIs

Sensex rebounds 228.23 pts to close at 36,701.16; broader Nifty up 88 pts to 10,829.35.

An investor watches an electronic board showing stock information at a brokerage office in Beijing, China on 9 July, 2015. 

(Photo: Reuters)

Market benchmark BSE Sensex rebounded from early lows to close 228 points higher on Friday on expectations of FPI tax roll back and some measures by the government to boost growth.

The 30-share barometer closed higher by 228.23 pts or 0.63 percent at 36,701.16, hours ahead of a presser by Finance Minister Nirmala Sitharaman.

The broader NSE Nifty rose by 88 points or 0.82 percent to settle at 10,829.35, with 41 of its 50 constituents closing with gains.

The two benchmark indices had declined up to 1 percent in the early session due to heavy selling in banking, financials, auto and FMCG stocks.

However, reports of roll back of FPI tax and announcement that the finance minister would address the media in the evening fuelled speculations that the government would announce measures to support the sagging economy.

Among major gainers, Vedanta rose the most by 6.55 percent, snapping its five-day losing streak.

Yes Bank rose by 5.24 percent, ONGC 4.66 percent, and Mahindra and Mahindra by 4.26 percent.

IndusInd Bank was the biggest loser among Sensex scrips, declining 1.9 percent.