Economic Survey does the job, Sensex bounces 178 points

Mumbai: The benchmark Sensex Friday broke its three days of losing spell by gaining over 178 points after the Economic Survey which came days before the Union Budget projected the economy to grow at 7-7.75 percent in 2016-17.

In the process, the index regained the psychological 23,000-mark.

For the week, the Sensex declined 554.85 points, or 2.34 percent, and the Nifty 181 points, or 2.51 percent.

The beginning of March derivatives contracts and positive global cues made investors more confident.

Early on, the 30-share barometer recaptured the 23,000 level, but soon succumbed to profit-booking before closing higher by 178.30 points, or 0.78 percent, at 23,154.30. The gauge had lost 812.79 points in the previous three sessions.

At the close, the broader NSE Nifty was above the key 7,000-mark at 7,029.75, up 59.15 points, or 0.85 percent. During today's session, the Nifty shuttled between 7,052.90 and 6,985.10.

The Survey estimated growth at 7-7.75 percent for the next fiscal while pressing for more reforms, subsidy cuts and sticking to the fiscal consolidation plan.

During April-November, FDI into the country rose 31 percent to USD 24.8 billion, the Survey added, which lifted sentiment.

Major gainers that supported the key indices were Coal India, SBI, NTPC, L&T, Axis Bank, ITC Ltd, HDFC Bank, Tata Motors, HDFC Ltd, Cipla, M&M, Infosys, Adani Ports, ICICI Bank, BHEL, RIL and Hindustan Unilever.

"Optimistic investors were seen widening their bets ahead of the Budget on Monday, encouraged by the Economic Survey," said Manoj Choraria, a Delhi-based stock broker.

Bajaj Auto, Hero MotoCorp, Lupin, Bharti Airtel, GAIL, Wipro, Sun Pharma, Asian Paints and Maruti Suzuki lost.

Of the 30 constituents of the Sensex, 19 lost and 11 advanced.

The BSE metal index gained the maximum, up 1.66 percent, followed by banking 1.51 percent, realty 1.47 percent, capital goods 1.12 percent, FMCG 1.06 percent and PSU 1.06 percent.

In broader markets, buying activity helped the BSE midcap gain 0.30 percent while the smallcap fell 0.45 percent.

Asia rallied after China's central bank chief said Beijing still has enough monetary firepower to keep the world's second-largest economy on track as G20 ministers gathered in Shanghai. European stocks are also pushing higher after the Wall Street advanced overnight.

According to provisional figures, foreigners sold shares worth Rs 1,465.68 crore yesterday.