Ahead of Modi government’s first full Budget, the benchmark Sensex today logged its best daily gain in almost six weeks, spurting 473.47 points to 29,220.12 after the Economic Survey made a strong pitch for big-bang reforms while projecting faster growth and improved fiscal situation.
The BSE Sensex opened at 28,865.12 on optimistic buying and gathered momentum, soon after the Economic Survey was tabled in Parliament. It regained the 29,000-mark and touched the day’s high of 29,254.02 before settling at 29,220.12, a gain of 473.47 points, or 1.65 per cent. This is its best gain since January 20, 2015 when it had gained 522 points.
The broad-based NSE Nifty reclaimed the key 8,800-mark by surging 160.75 points, or 1.85 per cent, to close at 8,844.60. During today’s session, the Nifty shuttled between 8,717.45 and 8,856.95.
The survey called for ‘big-bang’ reforms, raising public investments to drive growth and improving business environment. It forecast economy will grow by 8.1-8.5 per cent in 2015-16 and by 8-10 per cent in coming years while stressing on the need for accelerated fiscal consolidation in view of reduced macroeconomic pressures.
Major gainers that supported the key indices to regain crucial levels were Tata Power, L&T, ICICI Bank, Hindalco, CIL, M&M, NTPC, ONGC, SBI, Sesa Sterlite and Tata Steel.
Tata Motors, Axis Bank, BHEL, Hero MotoCorp, HDFC Bank, Sun Pharma, RIL, Bharti Airtel, Infosys and Cipla also rose.
However, Sensex laggards include GAIL, ITC, Wipro and Hindustan Unilever which succumbed to profit-booking.
“Investing community was clearly encouraged by the Survey which pointed out that current macroeconomic scenario in India is more favourable than others. India has reached a sweet spot and there is scope for big-bang reforms now. It also opens up space for RBI to cut rates...this raises the expectations from Budget tomorrow,” said Anand Rathi Financial Services, Sr. VP and Head - Equity Advisory, Devang Mehta.
Sectorwise, the BSE Realty index gained the most by rising 4.25 per cent, followed by Capital Goods 3.80 per cent. Power index rose by 3.17 per cent, Metal index by 3.02 per cent, Banking index 2.73 per cent, Consumer Durables index 2.23 per cent, Auto index 2.16 percent and Oil&Gas index 1.36 per cent.
Buying activity also gathered momentum ahead of the budget. The BSE Midcap index gained 1.84 per cent and the Smallcap index rose by 1.40 per cent.
According to provisional figures, foreigners bought shares worth Rs 2,312.15 crore yesterday. Domestic institutions too were net buyers to the tune of Rs 340.79 crore.
Meanwhile, stock markets will remain open tomorrow for normal trading on Budget day.