After what experts termed as a mini-budget on Friday, the markets on expected lines opened on a strong note on Monday.
The benchmark Sensex on Monday opened 663 points higher.
Finance Minister Nirmala Sitharaman had come out with a slew of measures to revive economic growth on Friday and indicated more such steps next week.
However, the gains were capped over the escalation of the ongoing US-China trade war during the weekend, which saw yet another tit-for-tat tariff shots being fired by both the large economies embroiled in an expensive trade tussle.
On Friday, China said that it would impose retaliatory tariffs on $75 billion more US goods. In response to this, US President Donald Trump announced more levies on Chinese imports and called for American companies to pull out of Asia’s largest economy.
At 9.24 a.m., the Sensex was trading 291.52 points higher at 36,992.68 after it touched an intraday high of 37,363.95.
The benchmark opened on a strong note at 37,363.95, higher from its Friday's close at 36,701.16.
Nifty after scaling 11,000 shed some of its gains to trade 71.85 points higher at 10,901.20.
One of the major announcement was the enhanced surcharge on foreign portfolio investors (FPI) being withdrawn, and the position pre-Budget being restored. The rollback came after Indian capital markets witnessed massive outflow of foreign funds in the month of July. Since the Budget, the benchmark index, Sensex had fallen over 3,000 points after it touched a life-time high of 40,000 in May.
To facilitate additional credit expansion, the government announced that it will be releasing Rs 70,000 crore announced in the budget upfront, which will make additional lending and liquidity of Rs 5 lakh crore available by providing this upfront capital to PSBs.
The FM also announced that vehicles conforming to BS-IV emissions which are purchased till March 2020 will remain operational for the entire time period that they are registered. Vehicles would also be depreciated at a higher rate - with a total 30% depreciation rate (currently at 15%) on all vehicles purchased till March 2020.
With IANS inputs