Shares soar on Survey signals; NSE Nifty spurts 36 points
Mumbai: After overnight hammering, shares made a smart turnaround Wednesday and reacted positively after the Economic Survey projected a fairly upbeat growth outlook of Indian economy as the benchmark CNX Nifty spurted by 36 points at the National Stock Exchange (NSE).
FMCG, oil & gas, financials, infra, auto and metal sectors led the recovery a day after the market was rattled by sell-off triggered by fears of new crisis in the eurozone.
The 50-share index oscillated between a high of 5,818.20 and a low of 5,749.70 before ending at 5,796.90, a gain of 35.5 points, or 0.62 percent, from last close.
After a firm start on the back of heavy buying in beaten down stocks and supportive overseas cues, the market failed to maintain its initial momentum and slipped into negative zone following profit taking at higher levels ahead of the Economic Survey.
The bourses rebounded smartly after Finance Minister P Chidambaram tabled in Parliament the pre-Budget Survey which highlighted a more stable growth rate for 2013-14 at 6.1-6.7 percent, while cautioning that global developments would continue to impact the country's overall growth.
Despite a revenue shortfall on the back of a slowdown in economic growth, the Survey noted that FY13 fiscal deficit is likely to be contained at 5.3 percent of GDP.
However, tail-end selling in technology and pharma counters dragged the key index to close below the 5,800 level.
The upsurge was also driven by some stability in global markets after US Federal Reserve Chairman Ben Bernanke confirmed his commitment to monetary easing, traders noted.
JP Associates, M&M, DLF, Bharti Airtel, L&T, IDFC, ONGC, Bajaj Auto, BHEL and Axis Bank were among the top Nifty gainers. Notable losers included Ranbaxy, Power Grid, GAIL, Siemens, Kotak Bank, Grasim, Infosys, Asian Paint, HeroMotoco and HDFC Bank.
Turnover in the cash segment jumped to Rs 11,915.07 crore from Rs 10,469.34 crore yesterday. A total of 7,667.24 lakh shares changed hands in 64,33,318 trades. The total market capitalisation stood at Rs 65,05,331 crore.