Nifty, Sensex, Bank Nifty turn around on Economic Survey – Friday closing report
Nifty’s bullishness will stall if it closes below 8,760
We had mentioned in Thursday’s closing report that the move on NSE’s CNX Nifty maybe weak but it may regain strength on a close above 8,750. The 50-share benchmark opened Friday in the positive and made a gradual upmove throughout the session. At the end of the session, it hit its day’s high and closed near to it. The market was waiting for the Economic Survey for 2014-15 to be tabled in the Parliament. The Survey was welcomed by the market.
S&P BSE Sensex opened at 28,865 while Nifty opened at 8,730. After hitting a low at 28,837 and 8,717, the benchmarks moved higher to hit a high at 29,254 and 8,857, respectively. Sensex closed at 29,220 (up 473 points or 1.65%) while Nifty closed at 8,845 (up 161 points or 1.85%). Bank Nifty too followed similar pattern of trading. It opened at 18,660 and moved from the low of 18,655 to a high of 19,114 and closed at 19,075 (up 536 points or 2.89%). NSE recorded a higher volume of 126.82 crore shares. India VIX fell 4.91% to close at 19.5700.
The stock exchanges will be open on Saturday as the Finance Minister presents the first full-fledged budget of the Narendra Modi government.
While tabling the Economic Survey 2014-15, Finance Minister Arun Jaitley stated that the government remains committed to fiscal consolidation and that the deficit target of 4.1% as envisaged in the Budget 2014-15 will be met. As per a medium-term fiscal strategy, there is a need to reduce fiscal deficit to the established target of 3% of GDP.
Annual GDP growth was seen at over 8% for 2015-16 and double-digit economic growth trajectory maybe possible in future, hoped the survey.
According to the Economic Survey the e-commerce sector in the country is likely to witness a growth of over 50% in the next five years.
Coming back to Indian stock markets, Unitech (17.07%) was the top gainer in ‘A’ group on the BSE, despite the fact that a police probe was ordered for Unitech allegedly cheating its buyers. However, the upcoming budget and anticipation of sops for the sector moved the stock higher. Hathway Cable & Datacom (8.49%) was the top loser in ‘A’ group on the BSE.
Tata Power (5.43%) was the top gainer in the Sensex 30 pack. Tata Power SED in consortium with L&T is one of the two selected development agencies for prestigious “MAKE” program Battlefield Management System for the Indian Army. L&T (4.67%) was among the top two gainers in the pack.
Gail (1.07%) was the top loser in the Sensex 30 stock. The board of directors have approved payment of interim dividend for the FY 2014-15 @ 30% (Rs3 per equity share) on the paid-up equity share capital.
On Thursday, US indices had a mixed closing. The consumer-price index fell 0.7% in January 2015 from December 2014, the Labor Department said yesterday. Prices slipped 0.1% from a year earlier, marking the first year-over-year decline since October 2009. Weekly jobless claims rose to 313,000 last week, above the 283,000 in the previous week. Durable goods orders figures for January increased 2.8%, after a 3.4% decline in the prior month.
Asian indices had mixed closing. Shanghai Composite (0.36%) was the top gainer while Straits Times (0.68%) was the top loser. Japanese industrial production rose 4% in January 2015 -the second straight on-month increase, following the 0.8% increase in December 2014, data showed today. European indices were showing mixed trading. US Futures were trading marginally in the red.
German lawmakers reportedly signalled that they will approve an extension of Greece's bailout with an overwhelming majority in parliament today, although many will do so reluctantly amid fears that Athens will not deliver on its reform promises.