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Sensex ends above 29,200; L&T up 5%

Provisionally,the 30-share Sensex surged 475 points to end at 29,222 and the 50-share Nifty gained 167 points to close at 8,851.

SI Reporter Mumbai
Benchmark indices ended firm on Friday post the relase of the Economic Survey which 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 Budget tomorrow lifted the trading sentiments.

Provisionally,the 30-share Sensex surged 475 points to end at 29,222 and the 50-share Nifty gained 167 points to close at 8,851.
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(updated at 3.30PM)

Benchmark indices are trading higher in the late noon trades Economic Survey which was tabled earlier 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 Budget tomorrow lifted the trading sentiments.
 
At 2.10 PM, the 30-share Sensex has surged 395 points at 29,141 and the 50-share Nifty is up 133 points at 8,817.

ECONOMIC SURVEY

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.

It is welcome to see that the Economic survey 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.

LOCAL CURRENCY

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.

KEY STOCKS

On the sectoral front, barring BSE FMCG index which id down marginally all setoral indices are trading in the positive territory with BSE Capital Goods index leading the rally up 3% followed by Bankex, Auto, Metal, Power and Realty indices up over 2% each.

Capital goods shares have 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 are up between 4-4.8%.

Private bank shares also rebounded after the recent corrrection with HDFC Bank, ICICI Bank and Axis Bank up 1-1.3% .

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 is up 3%. 

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 is down 1%.

NTPC Ltd has informed the BSE about the commencement of commercial operations of Unit-III 500-Mw Vallur thermal power project. The stock is up 1.7%.

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 12% while Hindustan Construction Company (HCC), Jaiprakash Associates, Oberoi Realty, Housing Development and Infrastructure Company (HDIL), IVRCL and GMR Infrastructure up 6% each on Bombay Stock Exchange.

In the broader market, the BSE Mid-cap and Small-cap indices are up between 1-2%.

Market breadth is strong with 1,718 gainers and 999 losers on the BSE.


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First Published: Feb 27 2015 | 3:30 PM IST

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