Indian stock markets on Thursday witnessed gains after reports claimed the government will likely exempt foreign portfolio investors (FPIs) from the tax surcharge announced in Budget. Sensex surged 637 points to close at 37,327, while Nifty ended 177 points higher at 11,032. HCL Technologies, automakers Tata Motors and Mahindra & Mahindra were among the top gainers. Investors sentiment were also boosted after Reserve Bank of India on Wednesday cut 35 basis points repo rate and promised liquidity support to financial sector. “Markets today started to sense some relief coming in for the capital markets and clarification or rollback of surcharge on FPIs. The recent round of market correction was led by FII selloff post the budget,” said Devang Mehta, head of equity advisory at Centrum Wealth Management. Banking and auto stocks led the gains today. The NSE auto index rose 3%, with Tata Motors surging 5.6%, Apollo Tyres 5% and TVS Motor 4%. Other top gainers in the auto pack included Bajaj Auto, M&M and Ashok Leyland, up between 3% and 5%. Among banking stocks, HDFC Bank rose 2.5% while ICICI Bank and SBI gained nearly 2% each. HCL Technologies Ltd gained 6.5% after the company said its revenue in constant currency terms grew 17% year on year and 7.7% on sequential basis. Among losers, Tata Steel Ltd fell 4% after the company reported a 63% slump in its net profit for June quarter to ₹702 crore from ₹1934 crore a year ago.
