Sensex gains over 150 points; Tata Power, L&T up 2-3%

Investors have maintained cautious stance ahead of the Economic Survey for 2015-16 which will be released today

Benchmark indices continue to trade higher led by buying among capital goods, auto and metal shares. Further, investors have maintained cautious stance ahead of the Economic Survey for 2015-16 which will be released by the government today.

Economic Survey reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.

By 9:50, the Sensex was higher by 153 points at 28,904 and the Nifty has gained 54 points at 8,7367.

Among broader markets, BSE Midcap and Smallcap indices are up 0.5-0.6%. Market breadth in BSE remains positive with 1,142 advances against 453 declined.

Top gainers from the Sensex pack are Tata Power, L&T, Sesa Sterlite, Coal India, M&M, HDFC Bank and BHEL.

Tata Power announced after market hours yesterday that its Strategic Engineering Division (Tata Power SED), in a consortium with L&T, is one of the two down-selected Development Agencies for Ministry of Defence's prestigious "MAKE" Program "Battlefield Management System (BMS)". Tata Power SED is the lead of the consortium. Tata Power and L&T have gained between 2-3%.


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Updated at 9:25

Markets have started the March series on a higher note tracking Asian cues. Investors will closely watch the Economic Survey for 2015-16 which will be released by the government today.

By 9:25, the Sensex was higher by 146 points at 28,892 and the Nifty has gained 50 points at 8,736.

According to Angel Broking’s report, “The trend deciding level for the day is 28,837 / 8,713 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 28,979 – 29,212 / 8,757 – 8,830 levels. However, if NIFTY trades below 28,837 / 8,713 levels for the first half-an-hour of trade then it may correct towards 28,604 – 28,461 / 8,640 – 8,597 levels.”

A day ahead of tabling of the Economic Survey in Parliament, Standard & Poor's on Thursday pegged India's economic growth at 7.9% for 2015-16 and 8.2% for the next financial year, against 7.4% expected in the current financial year. It termed India as the "bright spot" in Asia-Pacific.

Further, market regulator has decided to keep the stock market open on tomorrow just like any other normal trading session when the Finance Minister Arun Jaitley presents the first full-fledged Budget of the Narendra Modi government.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 2312.15 crore yesterday as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 340.79 crore yesterday, 26 February 2015, as per provisional data.

GLOBAL MARKETS

Global equities dipped on Thursday as investor enthusiasm was dampened by a pullback in oil prices related to rising inventories, while the dollar rose as economic data drove expectations that the Federal Reserve will raise interest rates.

The US S&P 500 ended down, led by a 1.8% drop in energy shares. Brent crude settled down 2.6% and US crude fell 5.5%. The Nasdaq was a bright spot in US equities, rising on news of a technology deal as it drew closer to its lifetime peak, hit in 2000.

Japanese stocks crawled to a fresh 15-year peak on Friday after the dollar surged against the yen as upbeat US data flipped expectations back in favour of an early interest rate hike by the Federal Reserve.

The rest of Asian equity markets lagged Japan after a sharp pullback in oil prices dulled risk appetite and sent Wall Street lower overnight.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3%, with South Korean and Australian shares posting light losses.

LEADERS & LAGGARDS

BSE Capital Goods index has surged over 1% followed by counters like Auto, Banks, Healthcare, Metal and Power, all gaining by nearly 1% each. Infact, all the major BSE sectoral indices are trading in positive zone.

Tata Power is the top Sensex gainer, up over 3%. L&T has surged around 2.5%.

Tata Power announced after market hours yesterday that its Strategic Engineering Division (Tata Power SED), in a consortium with L&T, is one of the two down-selected Development Agencies for Ministry of Defence's prestigious "MAKE" Program "Battlefield Management System (BMS)". Tata Power SED is the lead of the consortium.

Ratan Tata, former chairman of Tata Sons, has confirmed Jaguar Land Rover, luxury vehicle arm of Tata Motors, is looking for a factory site in North America. Tata Motors has gained over 1%.

Other notable gainers are Sesa Sterlite, HDFC Bank, Tata Steel, Bajaj Auto, HDFC and Coal India.

On the losing side, GAIL, Bharti Airtel, TCS, ITC and HUL have slipped between 0.2-1%.

GAIL after market hours yesterday said its board of directors at a meeting held today, 26 February 2015, approved payment of interim dividend of Rs 3 per equity share for the year ending 31 March 2015. The company has fixed 3 March 2015 as record date for the purpose of payment of interim dividend.

The country’s largest telecom company, Bharti Airtel has raised Rs 1,925 crore ($310 million) by selling nearly three per cent stake in its tower unit, Bharti Infratel. The stock is down 1%.

Among broader markets, BSE Midcap and Smallcap indices are up 0.5-0.6%.