Sensex jumps 800 points
The BSE Sensex soared 813 points to close above 58,000, buoyed by positive commentary in the Economic Survey and expectations of more reforms in Tuesday’s budget, while positive global cues also aided sentiment.
Market circles said investors were enthused over the projection of 8-8.5 per cent real GDP growth in the next fiscal year led by improvement in private investment and capital expenditure. The estimate comes at a time equities have crashed in recent weeks that have made some of them attractive at current levels.
“The economic growth projections for 2022-23 look very robust. A reasonably strong nominal GDP growth means we are looking at a healthy next fiscal year. This will also mean that tax collections will continue to remain robust and economic revival will gain further traction. Based on these projections, we remain very constructive on the future prospects,’’ Naveen Kulkarni, chief investment officer, Axis Securities, said.
Although headwinds in the form of firm crude oil prices, rising inflation and the prospects of Reserve Bank of India (RBI) raising interest rates persist, analysts said for now the focus will be on the budget.
The Sensex opened in the green at 57845.91 and touched an intra-day peak of 58257.63 — a gain of more than 1057 points. It later ended above the 58000 mark at 58014.17 — a rise of 813.94 points or 1.42 per cent.
Similarly, the broader Nifty finished with gains of 237.90 points or 1.39 per cent at 17339.85.
IT in limelight
While buying was witnessed across sectors, participants were seen accumulating IT, finance and auto segments.
Tech Mahindra posted the biggest gain in the Sensex pack rising 4.88 per cent. It was followed by Wipro, Bajaj Finserv, Infosys and SBI which inched up by up to 3.70 per cent.