BSE Sensex and NSE-Nifty bolstered gains as better than expected economic surveys improved investor sentiment. Both the Sensex and Nifty have gained over 1% each. Amongst all the sectors; Power, Metals & Mining and Banks have seen the maximum buying. Trading in defensive sectors namely FMCG and Information Technology remained sloppy.
Sensex has gained over 300 points while Nifty has gained over 100 points. Both S&P BSE Mid Cap and BSE Small Cap has outperformed the market. S&P BSE Midcap has gained about 1.3% while S&P BSE Smallcap has gained about 1.2%. The Indian Rupee is trading at 61.84 against the U.S. Dollar.
Investor optimism received a major boost after the Finance Ministry disclosed a bunch of important economic numbers. According to the data released in the Economic Survey by the Finance Ministry, the Current Account Deficit (CAD) is expected to fall to 1% of the Gross Domestic Product (GDP) by the next financial year. The Consumer Price Index (CPI) inflation is expected to remain in the range of 5% and 5.5%.According to the Finance Ministry, the GDP of India is expected to be around 8% in the next fiscal year.
Two companies, Larsen & Toubro and Tata Power are leading the Nifty 50 pack with gains of over 4%. The Government of India has shortlisted these two companies as possible recipient of defence projects totalling to the tune of Rs 50,000 crores. The Government is expected to take responsibility of 80% of the project cost while the remaining 20% will be taken care by the partners. The first prototype is expected to be revealed in 18-24 months.