Mumbai, Aug 23 (IANS) Gaining over 600 points from the day’s low the Sensex closed 228 points higher on Friday on renewed hopes of a stimulus hours ahead of an address by Union Finance Minister Nirmala Sitharaman.
Heavily beaten down automobile and manufacturing companies on the bourses gained the most that came on the back of news that government may announce a rollback of higher taxes for foreign portfolio investors (FPIs).
Analysts reiterated that there is a need to revive business confidence in the economy as the Indian financial markets and the economy is going through a rough patch.
Sensex closed 228.23 points or 0.63 per cent higher at 36,701.16 while the broader Nifty jumped by 88 points to 10,829.35.
“Market reversed from six months low in expectation of supportive policies from the government. Change in scrappage policy to revive auto demand and roll back FPI surcharges can change the current sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services
Nair added that the investors are having a muted expectation on Q1FY20 GDP data, improving business confidence is the need of the hour.