Indian shares reversed course and ended higher on Friday, led by gains in IT and auto stocks, after a media report said the government was discussing the tax surcharge on foreign portfolio investors (FPI) and its impact on markets. The Prime Minister's Office and finance ministry held talks over the suggestions and submissions by FPIs regarding the surcharge issue, television channel ET Now reported, citing sources. India had proposed to increase taxes on those with annual incomes of more than 20 million rupees ($287,387.29) in its annual budget last month, which rattled many FPIs. Foreign investors took out $1.8 billion from Indian equities in July.
The broader NSE index ended 0.16% higher at 10,997.35, while the benchmark BSE index closed up 0.27% at 37,118.22. For the week the NSE index was 2.5% lower and the BSE index was down 1.88%, recording their worst weekly fall in three weeks.