Mumbai: Ahead of Modi government's first full Budget, the benchmark Sensex Friday logged its best daily gain in almost six weeks, spurting 473 points to regain 29000 level after Economic Survey made a strong pitch for big-bang reforms while projecting faster growth and improved fiscal situation.
The NSE Nifty index also sprinted by 161 points to close above the 8,800 mark, a day after Railway Budget disappointed participants due to lack of big announcements while the proposed hike in freight rates hit sentiments.
The Economic Survey 2014-15, tabled in Parliament today, 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 percent in 2015-16 and by 8-10 percent in coming years. It stressed on the need for accelerated fiscal consolidation.
The BSE Sensex resumed higher at 28,865.12 and shot up further to 29,254.02 before ending at 29,220.12, showing a sharp gain of 473.47 points or 1.65 percent. This is its best daily gain since January 20, 2015.
Similarly, the CNX 50-share Nifty rose by 160.75 ponts or 1.85 percent, to finish at 8,844.60 after hitting 8,856.95.
"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...This raises the expectations from Budget tomorrow," said Anand Rathi Financial Services, Sr. VP and Head - Equity Advisory, Devang Mehta.
Buying was across-the-board. Major gainers that supported the key indices to regain key levels include Tata Power, L&T, ICICI Bank, Hindalco, CIL, M&M, NTPC, ONGC and SBI.
Anticipating huge volatility during the special stock market trading on Budget day tomorrow, regulator Sebi and stock exchanges have enhanced vigil to keep manipulators at bay and ensure smooth operations.
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.
Globally, Asian indices closed mixed while European benchmarks were trading lower.
Veracity Broking Services, Head of Research, Jignesh Chaudhary said: "Indian stocks rose on hopes the government would deliver a budget that increases public investment and will enhance the idea of 'Make in India' which will boost the various sectors like manufacturing and infrastructure."
In Asia, benchmark indices in Hong Kong, South Korea and Singapore ended lower by 0.32 percent to 0.37 percent while indices in Japan and China closed higher by 0.06 percent to 0.36 percent.
European markets were trading lower in their afternoon trade as key indices in France, Germany and the UK moved down by 0.08 percent to 0.09 percent.
Turning back to the local market, 26 scrips out of the 30-share Sensex pack ended higher.
Major gainers include Tata Power (5.43 percent), L&T (4.67 percent), ICICI Bank (4.25 percent), Sesa Sterlite (4.20 percent), Hindalco (3.67 percent), SBI (3.59 percent), NTPC (3.46 percent) and Coal India (2.93 percent).
Maruti Suzuki (2.75 percent), Tata Motors (2.73 percent), Axis Bank (2.66 percent), BHEL (2.38 percent) and Reliance Industries (1.59 percent) also notched up smart rise.
Among laggards, Gail India fell by 1.07 percent
Among the S&P BSE sectoral indices, Realty 4.25 percent, followed by Capital Goods 3.80 percent, Power by 3.17 percent, Metal 3.02 percent, Bankex 2.73 percent, Consumer Durable 2.23 percent, Auto 2.16 percent, Oil&Gas 1.36 percent and Healthcare 1.17 percent.
Small-cap and Mid-cap indices also rose by 1.04 percent and 1.84 percent respectively on fresh buying by retail investors.
The total market breadth turned better as 1,820 stocks ended in green, 1,059 finished in red while 123 ruled steady. The total turnover fell to Rs 4,357.07 crore from Rs 4,867.74 crore yesterday.
The BSE Sensex had witnessed drop on the Budget days in the past three years (2012, 2013 and 2014). Last year, the Sensex had closed 0.28 percent lower at 25,372.75, while the Nifty had ended 0.23 percent down at 7,567.75. In 2013, the BSE Sensex fell 290.87 points to end at 18,861.54. Similarly, in 2012, the Sensex had fallen by 210 points to end at 17,466.
However, in 2011, the BSE Sensex had ended up 0.69 percent at 17,823.40 points after rising as much as 3.4 percent after the Budget was unveiled. The BSE Sensex rose as much as 2.6 percent after the budget before paring gains, in 2010.
