Sensex Reclaims 29,000, L&T Leads; Economic Survey Eyed

After coming off the intraday highs in the late morning deals, the Sensex continued its northward journey supported by gains in capital goods stocks.

 

The Nifty was also trading firm above 8,750 led by buying in Larsen & Toubro, Jindal Steel and BHEL. 

 

Later in the day, the government will present the Economic Survey for the year 2014-15.

 

Buying was visible in the capital goods stocks as investors looked at buying stocks from this sector after Railway Minister yesterday called for investments in improving infrastructure of railways. Companies from capital goods space are likely to benefit from this move.

 

The BSE capital goods index rallied over 3 per cent on the Bombay Stock Exchange.

 

Auto, banking and power stocks were also in demand and the respective indices were up around 1.5 per cent each.

 

From the Nifty basket Jindal Steel zoomed 11 per cent to Rs 205. 

 

Shares in Larsen & Toubro and Tata Power gained on Friday as the government of India selected a consortium of these companies for a mega defence order.

 

L&T gained as much as 5 per cent to an intraday high of Rs 1,763, while Tata Power Company surged over 4 per cent to a high of Rs 85.75.

 

NMDC, Bank of Baroda, Hindalco, IDFC, Coal India, Sesa Sterlite, Punjab National Bank and Tata Steel were also trading higher by 2-4 per cent each.

 

The mid-cap and small-cap stocks were in docus and both the indices gained over 1 per cent each.

 

At 11:45 A.M., the Sensex surged 253 points to 29,003 and the Nifty was at 8,766, up 83 points.