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India's economy may grow at 6.1-6.7% for the year 2013-14, the government forecast in a report on Wednesday, a day prior Finance Minister P. Chidambaram unveils a austere budget. Further, the economic survey sees FY14 fiscal deficit at 4.8% while the current account deficit is seen at 4.6%. The FY13 tax mop up is significantly lower than budget estimate. "While India's recent slowdown is partly rooted in external causes, domestic causes are also important," it said, adding boost to consumption coupled with supply side constraints led to higher inflation.
"The idea had been to state the most important issues that is hurting growth and it was well stated. To achieve fiscal consolidation, the government has to curb gold imports and reduce mounting subsidy which was well taken care of in the survey. They have also maintained a similar target for fiscal deficit while raised GDP but they mentioned a broad range of 6.1-6.7% so it clearly shows that even they are not sure as to where we will stand due to current economic uncertainties," said Sonam Udasi, Senior VP and Head Research, IDBI Capital Markets.
The rupee appreciated by 41 paise to Rs 53.68 against the dollar at the Interbank Foreign Exchange (forex) market on Wednesday on selling of the US currency by exporters.
Meanwhile in Asia, Stocks mostly rose Wednesday as U.S. economic data and comments from Federal Reserve chief Ben Bernanke helped lift the mood in global markets. Nikkei however slipped 1.3% at 11,254. Shanghai Composite was up 0.8% at 2,313.
BSE capital goods index added 2.4% at 9,506. Realty index was up 2% at 2,067. Oil & gas, power and metal indices were up over 1% each. However, the appreciating rupee dragged the IT index down 1% at 6,723.
Bharti Airtel was the top Sensex gainer, up by over 3.2% at Rs 322. Morgan Stanley raised its rating on Bharti Airtel Ltd to "overweight" from "equalweight," citing positive factors for the sector such as rising tariffs and data volumes, falling capital spending and eased competitive intensity.
Larsen & Toubro, Mahindra & Mahindra and Bajaj Auto aded 2-3% each. Reliance was up 1% at Rs 831. ICICI Bank and SBI were up as well.
On the other hand, GAIL has slipped 1.7% at Rs 334. Infosys was down 1.5% at Rs 2914. Among other IT shares, TCS slipped 0.7% while Wipro was up 0.7%, respectively.
Among other shares, Suzlon Energy rallied almost 14% at Rs 24.25, after India’s largest wind-turbine maker said that it wins 103-megawatt (MW) order from Oil & Natural Gas Corporation Limited (ONGC). ONGC on the other hand, was up 3% at Rs 315.
Ranbaxy Laboratories ended lower by 7.2% at Rs 340, extending its previous day’s about 4% fall, after reporting a lower-than-expected numbers on the profit front for the quarter ended December 31, 2012 (Q4).
CORE Education and Technologies tanked 46% at Rs 60 on back of heavy volumes on NSE despite the company clarifying that the pledged shares were not sold in the market. The stock opened at Rs 113 and hit a high of Rs 118 in morning trades on NSE.
BSE market breadth was neutral. Out of 2,930 stocks traded, 1,441 shares have advanced while 1,359 shares declined.
