Markets continue to trade firm; Nifty aims 7,050

At 2:35 pm, the S&P BSE Sensex was up 223 points at 23,199 and the Nifty50 was up 71 points at 7,041

Markets continue their ascent in the late noon trades after the Economic Survey 2016 tabled in the Parliament reinstates confidence in the growth of Indian economy for the next two years. The rally in the local markets is led by the banking shares.

At 2:35 pm, the S&P BSE Sensex was up 223 points at 23,199 and the Nifty50 was up 71 points at 7,041.

Read more from our special coverage on "MARKETS"

• Markets turn choppy as Eco Survey begins; Banks spike up
• Positive start seen tracking rally in global markets
• Nifty below 7,000 post Rail Budget; Rail stocks derail
• Markets open flat; Railway Budget, Feb F&O expiry eyed
• Markets likely to open flat; Railway Budget, Feb F&O expiry eyed

The top gainers on the Sensex are Coal India, SBI, Axis Bank, HDFC Bank, and L&T, up between 2%-4% each.

However, Maruti Suzuki, Lupin, Bharti Airtel, Hero Motocorp, Bajaj Auto have dropped between 0.2-3.5% each in an otherwise strong market.  
------------------------------------------------------
(updated 1:35 pm)

Markets have gained strength in the noon led by a smart rally in the banking shares after the Economic Survey 2016 tabled by the Finance Minister stated plans of capitalizing PSU banks along with the rights to recover money from debt ridden promoters.

At 1:35 pm, the S&P BSE Sensex was up 185 points at 23,161 and the Nifty50 was up 56 points at 7,027. 

ECO SURVEY 2016: HIGHLIGHTS

The economic survey projected India to grow at 8% in the coming couple of year. Going forward, the Survey said the next year is expected to be a challenging one from the fiscal point of view. As per the road map, the centre's fiscal deficit should come down at 3.5% of country's gross domestic product (GDP) in 2016-17 from 3.9% in the current financial year.

As a cheer to the common people, it stated that consumption can rise if spending from higher wages and allowances of government workers on implementation of Seventh Pay Commission and return of normal monsoon occur.

On the flipside, the survey enumerated three downside risks - turmoil in global economy could worsen the outlook of exports, contrary to expectations oil price rise would increase the drag from consumption and the most serious risk is the combination of these two factors.

BANKS LEAD

Shares of banks have surged in today’s trade with Nifty bank surging over 1.5% quoting at 13,755 after hitting an intra-day high of 13,788.90. Among the prominent gainers are Axis Bank, SBI, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank, YES Bank up between 1%-3.5%.

STOCKS IN ACTION

Coal India gained 3.5% after Suresh Prabhu yesterday in the Rail Budget announced no hike in the freight charges.

Larsen and Toubro surged over 2% after reports stated that Larsen andToubro is upbeat by the priority given to the dedicated freight corridor project in the Rail Budget and expects the opportunity for the engineering and construction sector to be worth over Rs.2.5 lakh crore from the three new projects announced. Also, Hindustan Construction, Simplex Infrastructure gained 2% each.

UB Group companies are trading higher after its chairman Vijay Mallya stepped down as non-executive chairman of United Spirits, controlled by Diageo Plc., after striking a sweetheart deal with the UK firm which agreed to drop all charges of irregularities under his watch, and pay him $75 million over five years in return for getting him to go.

United Breweries Holdings up 20%, Mangalore Chemicals and Fertilizers up 8%, United Breweries up 1% and United Spirits has gained 2%.

On the other hand, Maruti Suzuki has dipped to its 52-week low at Rs 3,372, down 1.5% on the BSE, extending its month-long fall on the bourses. Thus far in February, the stock has underperformed the market by falling 18% from Rs 4,097 on January 29, as compared to 8% decline in the S&P BSE Sensex. 

Weakness was seen across the board in the auto pack with Bajaj Auto, Hero Motocorp, Eicher Motors and Ashok Leyland down between 0.5%-4%.