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 per cent 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 per cent to settle at 10,829.35, with 41 of its 50 constituents closing with gains.
The two benchmark indices had declined up to 1 per cent in the early session due to heavy selling in banking, financials, auto and FMCG stocks. The 30-share index dropped 345.55 points or 0.95 per cent to 36,127.38 in early session with 19 of its constituents trading in the red.
The broader NSE Nifty dropped 94.30 points or 0.88 per cent to 10,647.05 points, dragged down by losses in ICICI Bank, Cipla and auto major Maruti.
FMCG, auto, banking and financial sector stocks came under heavy selling pressure after government officials virtually ruled out a stimulus package to arrest a slowdown and boost growth.
Among Sensex stocks, ICICI fell the most by 2.62 per cent. HDFC Bank, Kotak Bank, Axis Bank, SBI and IndusInd Bank also dropped up to 1.7 per cent.
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 per cent, snapping its five-day losing streak. Yes Bank rose by 5.24 per cent, ONGC 4.66 per cent and Mahindra and Mahindra by 4.26 per cent. IndusInd Bank was the biggest loser among Sensex scrips, declining by 1.9 per cent.
(With inputs from PTI)