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Markets have extended gains and are trading near day’s high after the Economic Survey forecasted India's GDP growth for 2015-16 between 8.1-8.5%.
Further, the Economic Survey also said that the government remains comitted to fiscal consolidation, adding that it will adhere to fiscal deficit target of 4.1% of GDP in FY15.
At 13:48PM, the 30-share Sensex was up 405 points at 29,151 and the 50-share Nifty was up 134 points at 8,817.
The top gainers on the Sensex are Tata Power, L&T, Hindalco, ICICI Bank and Sesa Sterlite, all surging between 3-5%.
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Updated at 12:50 PM
Markets edged higher led by financials after the Economic Survey forecasted India's GDP growth for 2015-16 between 8.1-8.5%.
Further, the Economic Survey also said that the government remains comitted to fiscal consolidation, adding that it will adhere to fiscal deficit target of 4.1% of GDP in FY15.
At 12:50PM, the 30-share Sensex was up 269 points at 29,015 and the 50-share Nifty was up 93 points at 8,777.
The Economic Survey 2014-15 tabled in the parliament by Finance Minister 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 economic survey 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.
Larsen & Toubro and Tata Power were the top Sensex gainers up over 4% each. 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.
Banks which are a proxy to the economy firmed up after robust growth forecast for 2015-16 in the Economic Survey. HDFC Bank, ICICI Bank, Axis Bank and SBI were up 1.3-2.9% each.
Among state-owned banks, Bank of India, Bank of Baroda and Union Bank of India have rallied 5% each, while Canara Bank, Indian Overseas Bank, Oriental Bank of Commerce, Allahabad Bank and IDBI Bank surged 4% each.
Index heavyweights Reliance Industries and Infosys were up 0.7-1% each.
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(Updated at 11:45AM)
Markets edged higher in late morning deals 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.
At 11:45AM, the Sensex was up 215 points at 28,962 and the Nifty gained 77 points at 8,760.
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.
Asian stocks came off their five-month highs on Friday after sharp pullback in crude oil prices dampened risk appetite, even as Japanese shares firmed up to fresh 15-year highs after the yen weakened against the US dollar.
BSE Realty and Capital Goods indices were the top gainers up over 3% each followed by Metal, Power, Auto and Bankex indices up 1-2.8% each. However, BSE FMCG index was the sole loser down 1.5%.
Capital goods shares gained on the back of fresh order inflows.
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 were up 4-4.8% each.
Bank shares also rebounded after the recent corrrection with HDFC Bank, ICICI Bank, SBI and Axis Bank up 1-1.3% each.
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 stock was down 1.5%.
NTPC Ltd has informed the BSE about the commencement of commercial operations of Unit-III 500-Mw Vallur thermal power project. The stock was down 0.1%.
Shares of real estate and infrastructure companies are trading higher on the bourses on hopes the forthcoming budget may include sops to the housing and infrastructure sector.
Unitech has rallied 11% while Hindustan Construction Company (HCC), Jaiprakash Associates, Oberoi Realty, Housing Development and Infrastructure Company (HDIL), IVRCL and GMR Infrastructure up 5% each on National Stock Exchange (NSE).
In the broader market, the BSE Mid-cap and Small-cap indices were up nearly 1% each.
Market breadth was strong with 1,489 gainers and 824 losers on the BSE.
