Sensex Zooms 450 Points, Nifty Above 8,800; Growth Pegged at 8.5%

The Sensex zoomed over 450 points in trades on Friday after the government in its economic survey pegged the economy to grow at over 8 per cent in FY16.

 

The Nifty crossed the important psychological level of 8,800 as investor sentiment got a boost from the macro-economic numbers for 2014-15 which indicate that the Finance Minister may announce big bang reforms tomorrow.

 

Survey emphasised on revitalising the PPP model, which has so far seen poor response from the private players on account of higher risks involved in the initial stage of projects.

 

Government expects fiscal deficit target of 4.1 per cent for FY15 is likely to be met. 

 

Foreign investors, who have played a major role behind the surge in Sensex and Nifty are concerned about the fiscal deficit target.

 

Buying was visible across the board after the government came out with these numbers. The capital goods stocks were in high demand in trades on Friday on hopes that the government will push investments infrastructure space.

 

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

 

Banking, metal, realty, power and consumer durable stocks also advanced.

 

Most of the Nifty basket stocks were trading higher. 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.

 

At 3:14 P.M., the Sensex was up 489 points at 29,229 and the Nifty advanced 165 points to 8,849.