Markets zooms on tax relief buzz

Mumbai: The BSE Sensex surged 637 points while the broader Nifty zoomed past the 11,000-mark on Thursday following reports that the government may address tax concerns of market participants.

After a moderate opening, the Sensex was propelled by a burst of buying towards the fag-end, led by energy, banking and IT counters.

It finally finished at 37,327.36, showing a jump of 636.86 points or 1.74 per cent. Similarly, the NSE Nifty climbed 176.95 points or 1.63 per cent to 11,032.45. This is the biggest single-session gain for both the key indices since May 20.

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

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.

"Some confidence boosting measures and steroids for the economy is expected as finance ministry seems to be engaging in extensive discussions with industry participants.

However, it's too early to speculate on policy decisions," said Devang Mehta, Head - Equity Advisory, Centrum Wealth Management.

All sectoral indices ended in the green, with BSE energy, auto, IT, teck, oil and gas, telecom, realty, bankex, power, finance, FMCG, metal and utilities indices rallying up to 3.15 per cent.

The broader BSE midcap and smallcap indices too spurted up to 0.74 per cent.

Meanwhile, the Indian rupee appreciated 23 paise to 70.66 against the US dollar intra-day. Brent crude futures, the global oil benchmark, rebounded 1.58 per cent to $57.12 per barrel.