Sensex Nifty surge after Economic Survey boosts

Mumbai: Ahead of Modi government’s first full Budget, the benchmark Sensex on Friday logged its best daily gain in almost six weeks, spurting 473.47 points to 29,220.12 after the Economic Survey made a strong pitch for big-bang reforms while projecting faster growth and improved fiscal situation. 

The BSE Sensex opened at 28,865.12 on optimistic buying and gathered momentum, soon after the Economic Survey was tabled in Parliament.

It regained the 29,000-mark and touched the day’s high of 29,254.02 before settling at 29,220.12, a gain of 473.47 points, or 1.65%. This is its best gain since January 20, 2015 when it had gained 522 points.      

The broad-based NSE Nifty reclaimed the key 8,800-mark by surging 160.75 points, or 1.85%, to close at 8,844.60. During Friday’s session, the Nifty shuttled between 8,717.45 and 8,856.95.  

The survey called for ‘big-bang’ reforms, raising public investments to drive growth and improving business environment. It forecast economy will grow by 8.1-8.5% in 2015-16 and by 8-10% in coming years while stressing on the need for accelerated fiscal consolidation in view of reduced macroeconomic pressures.          

Major gainers that supported the key indices to regain crucial levels were Tata Power, L&T, ICICI Bank, Hindalco, CIL, M&M, NTPC, ONGC, SBI, Sesa Sterlite and Tata Steel.      

Tata Motors, Axis Bank, BHEL, Hero MotoCorp, HDFC Bank, Sun Pharma, RIL, Bharti Airtel, Infosys and Cipla also rose.      

However, Sensex laggards include GAIL, ITC, Wipro and Hindustan Unilever which succumbed to profit-booking.        

“Investing community was clearly encouraged by the Survey which pointed out that current macroeconomic scenario in India is more favourable than others. India has reached a sweet spot and there is scope for big-bang reforms now.

“It also opened up space for RBI to cut rates…this raises the expectations from Budget tomorrow (Saturday),” said Anand Rathi Financial Services, Sr VP and Head, Equity Advisory, Devang Mehta. 

Sector wise, the BSE Realty index gained the most by rising 4.25%, followed by Capital Goods 3.80%. Power index rose by 3.17%, Metal index by 3.02%, Banking index 2.73%, Consumer Durables index 2.23%, Auto index 2.16% and Oil&Gas index 1.36%.

Buying activity also gathered momentum ahead of the budget. The BSE Midcap index gained 1.84% and the Smallcap index rose by 1.40%.

According to provisional figures, foreigners bought shares worth Rs 2,312.15 crore on Thursday. Domestic institutions too were net buyers to the tune of Rs 340.79 crore.

Stock markets will remain open on Saturday for normal trading on Budget day.