Mumbai, Feb 17 (PTI) : The benchmark Sensex jumped 97 points to end at its highest level this month, led by banking, power and auto shares on hopes tax concession proposals announced today in interim budget will boost economic growth.
The government’s fiscal prudence also supported the day’s gains. Brokers said investors cheered Finance Minister P Chidambaram saying that fiscal deficit for the ongoing financial year will be contained at 4.6 per cent, current account gap will be capped at USD 45 billion and net borrowing for 2014-15 would be lower than FY’14 revised estimates.
Banking, auto, power and pharma shares attracted good buying support while shares from realty, consumer durable and metal suffered losses on profit-booking. Overall, seven of the twelve BSE sectoral indices rose.
The BSE 30-share Sensex moved most of the day in positive terrain in a range of about 150 points before settling at month’s high of 20,464.06, up 97.24 points or 0.48 per cent.
Tata Power, M&M, Dr Reddys and ICICI Bank led 20 gainers in Sensex. Hindalco, Coal India and RIL led the 10 losers.
On GDP growth, Chidambaram today said the economy is more stable than what it was two years ago following several steps taken by the government and that the growth will be higher in the second half of the fiscal.
The 50-share CNX Nifty of the NSE also rose by 24.95 points or 0.41 per cent at 6,073.30.
“Excise duty cuts have been announced for sectors facing the major brunt of the slowdown…positive for the automotive sector, capital and consumer durables goods,” said Dinesh Thakkar, Chairman & Managing Director, Angel Broking.
Private bank were the among best performers as duty cuts in vehicles could boost lending business, analysts said.
Naresh Takkar, MD & CEO, ICRA Ltd said: “The absence of major expenditure announcements ahead of elections and focus on fiscal prudence is reassuring.”
Asian stocks closed up after China’s new credit increased to a record in January, boosting optimism the world’s second-largest economy can maintain its growth momentum.
Indices in China, Hong Kong, South Korea, Taiwan, Japan and Singapore rose 0.07-1.07 per cent range.
European markets were trading higher in their early trade as indices in France, Germany and the UK firmed up in 0.09 per cent to 0.95 per cent range.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: “Indian equity markets was pretty much decent on the day of Interim Budget. The budget was much in line with expectations from Mr. P. Chidambaram. The automobile sector jumped as there was excise duty cut proposed in the budget to boost the sales….Majority of the banks were also amongst the highest gainers today.”
Major Sensex gainers were Tata Power (4.81 per cent), M&M (2.83 per cent), Dr Reddy’s Lab (2.45 per cent), ICICI Bank (2.13 per cent), Hero MotoCorp (1.99 per cent), Maruti Suzuki (1.38 per cent) and HDFC Bank (1.37 per cent).
HDFC (1.15 per cent), Axis Bank (1.15 per cent) and NTPC (1.10 per cent) were also among notable winners.
However, Coal India fell by 1.59 per cent, Hindalco by 1.35 per cent, and RIL by 1.22 per cent.
Among the S&P BSE sectoral indices, the Bankex rose by 1.21 per cent, followed by Power 0.96 per cent, Auto 0.76 per cent and Healthcare 0.67 per cent. Laggards included Realty which fell 0.82 per cent, Consumer Durable (down 0.73 per cent) and Metal (down 0.71 per cent).
Market breadth remained negative as 1,373 stocks ended in the red, 1,235 stocks finished in the green and 157 ruled steady. The total turnover fell to Rs 1,524.26 crore from Rs 1,732.10 crore on last Friday.