Mumbai, Feb 27 (IANS) A day ahead of the union budget, a benchmark index of Indian equities markets, the 30-scrip Sensitive Index (Sensex) closed Friday’s trade up 474 points or 1.65 percent.
Bullish sentiments prevailed as the day’s biggest trigger – the Economic Survey – was tabled in the Lok Sabha by Finance Minister Arun Jaitley.
The survey projected India’s economic growth at more than 8 percent for the next fiscal.
The annual report card on the state of the country’s economy said the growth should rise further and double digit expansion was a possibility.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed the day’s trade with healthy gains. It closed 160.75 points or 1.85 percent up at 8,844.60 points.
The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 28,865.12 points, closed at 29,220.12 points, up 473.47 points or 1.65 percent from the previous day’s close at 28,746.65 points.
The Sensex had touched a high of 29,254.02 points and a low of 28,837.06 points in intra-day trade.
Analysts said that markets opened on a higher note, and closed positively on Friday which was the first day of March futures and option (F&O) series. Buying was mainly seen in the beaten stocks especially in banking stocks.
“Good set of indicators from economic survey added flair to markets expectation before the budget,” said Vinod Nair, head- fundamental research, Geojit BNP Paribas Financial Services.
“Post expiry which was providing headwind to market, it has carried up expecting “ease to do” business in India.”
According to Nair, the economic survey expects better platform for manufacturing in India and lower inflation than RBI’s forecast.
“A good railway budget which has provided plan for 5 years had also added support to the environment,” Nair added.
Other analysts said that the economic survey upholds India’s economic position and envisages a reforms plan focused upon “creating opportunity and reducing vulnerability”.
“This definitely throws a lot of light on what to expect from tomorrow’s budgetary announcement, at least in spirit,” said Debopam Chaudhuri, vice president- research and chief economist, ZyFin Research.
“Fiscal consolidation balanced with right amount of expenditure on core areas like education and healthcare should pave way for a 5 year growth vision for India, ensuring the brightest spot for India among emerging economies.”
On Friday, healthy buying was observed in all sector-based indices of the BSE except fast moving consumer goods (FMCG).
The S&P BSE capital goods index surged 653.10 points, followed by bank index which rose 518.77 points, automobile index rocketed 417.21 points, metal index went up by 310.45 points.
Healthy buying was also observed in consumer durables index which increased 231.78 points, healthcare index which was up 180.44 points and oil and gas index augmented by 129.19 points.
However, S&P BSE FMCG index was down 18.28 points.
The major Sensex gainers were: Tata Power, up 5.43 percent at Rs.87.30, Larsen and Toubro (L&T), up 4.67 percent at Rs.1,758.55, ICICI Bank, up 4.25 percent at Rs.335, Sesa Sterlite, up 4.20 percent at Rs.217.05 and Hindalco, up 3.67 percent at Rs.155.20.
The losers were: GAIL, down 1.07 percent at Rs.407.40; ITC, down 0.47 percent at Rs.393.80; Wipro, down 0.36 percent at Rs.654.45 and Hindustan Unilever, down 0.15 percent at Rs.886.80.
The major trigger for the Indian markets Saturday will be the union budget for which the exchanges will be remains open.