Indian stock markets shot up on Thursday after a Reuters report said that the government may exempt foreign portfolio investors from an increase in taxes. The BSE Sensex closed 636.86 points up at 37,327.36 points, while the National Stock Exchange Nifty gained 176.95 points to close at 11,032.45.

Stock markets had slumped over the last three days following the government’s decision to revoke special status to Jammu and Kashmir under Article 370 of the Indian Constitution.

HCL Technologies was the top gainer on both indices on Thursday. The other top stocks on the Sensex were Tata Motors, Bajaj Auto, Mahindra & Mahindra and Reliance Industries. On the Nifty, these were Tata Motors, JSW Steel, Mahindra & Mahindra and Reliance Industries.

Only three stocks – Tata Steel, IndusInd Bank and Axis Bank – declined on the Sensex. On the Nifty, the biggest losers were Tata Steel, Cipla, UltraTech Cement, IndusInd Bank and Indiabulls Housing Finance.

The Indian rupee was trading 32 paise higher at 70.56 against the United States dollar at 3.52 pm.