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Sensex up nearly 500 points on Eco Survey, Budget hopes

Investors will keenly await for the Union Budget due to be tabled tomorrow in the Parliament

Indrani Mazumdar  |  Mumbai 

Benchmark indices ended on a robust note on Friday after which was tabled earlier today estimated India’s GDP growth between 8.1 and 8.5 per cent in 2015-16. Further, heavy buying by the market participants ahead of the Union tomorrow lifted the trading sentiments.

Shares of and were up over 5% each and contributed nearly 100 points to the rise on the on the news that the consortium of the two abovementioned companies is one of the two down-selected Development Agencies for Ministry of Defence's prestigious "MAKE" Program "Battlefield Management System.

The 30-share surged 473 points at 29,220 and the 50-share soared 161 points to close at 8,845.


Arun Jaitley today forecasted FY16 GDP growth between 8.1% and 8.5%, adding that double-digit growth trajectory is now a possibility while FY15 GDP growth seen at 7.4%.

The also estimates the CAD at 1.3% of GDP in FY15. FY16 retail inflation is seen in the range of 5-5.5%. The government must adhere to medium-term fiscal deficit target of 3% of GDP, it added. The savings-investment dynamics and reversal of subdued exports will be crucial for growth, the economic report said, adding that decline in oil prices provides an incentive for overall growth.

"It is welcome to see that the is targeting elimination of revenue deficit and laying out a fiscal discipline wherein borrowings will be done for only capital investments. It is also heartening to note that the economic survey believes that the worst for the economy is clearly over and that the economy is on an upswing. The survey notes current account deficit to fall below 1% in the coming year and that the fiscal deficit target of 4.1% is achievable. These are very welcome developments. The goal of 8% growth in the coming year appears audacious but achievable, especially with the new statistical basis for measuring GDP," Jaijit Bhattacharya, Partner , Infrastructure & Government services, KPMG in India adds.


The Indian rupee witnessed profit taking after recent gains against the US dollar in the previous few sessions. The currency was trading marginally lower at 61.79 compared to the previous close of 61.75 at the Interbank Foreign Exchange after the US dollar appreciated against other currencies. On Thursday, the rupee had hit fresh three-week high on the back of dollar sales by banks and exporters.


On the sectoral front, barring FMCG index which was down marginally all setoral indices ended in the positive territory with Realty and Capital Goods indices leading the rally up 4% each followed by Bankex, Auto, Metal, Power and Consumer Durables indices up over 2% each.

Capital goods shares gained on the back of fresh order inflows.

announced after market hours yesterday that its Strategic Engineering Division (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 ended between 4.5-6%.

Private bank shares rebounded after the recent corrrection with HDFC Bank, ICICI Bank and Axis Bank up 1-4.5% .

State Bank of India received shareholders' approval for raising Rs 15,000 crore through a public offer, including a rights issue, to fund business and meet global capital adequacy norms. The stock gained over 3.5%.

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 stock was down nearly1%.

Ltd informed the about the commencement of commercial operations of Unit-III 500-Mw Vallur thermal power project. The stock gained over 3%.

Shares of real estate and infrastructure companies ended higher on the bourses on hopes the forthcoming may include sops to the housing and infrastructure sector.

Unitech rallied 17% while Hindustan Construction Company (HCC), Jaiprakash Associates, Oberoi Realty, Housing Development and Infrastructure Company (HDIL), IVRCL and GMR Infrastructure gained up to 10% each on Bombay Stock Exchange.

In the broader market, the BSE Mid-cap and Small-cap indices were in line with the large counterparts and were up between 1.4-2%.

Market breadth was strong on the BSE with 1,813 gainers and 1,065 losers.

First Published: Fri, February 27 2015. 15:53 IST