Markets rallied for the second consecutive day on Friday as investors cheered the government’s estimate of 5.5% economic growth in 2014-15 amid strong global cues. A rally in IT stocks after Accenture Plc raised its revenue forecast for the current fiscal also boosted sentiment.
The benchmark Sensex rose 245.27 points, or 0.90%, to 27,371.84 while the Nifty firmed up 65.90 points, or 0.75% to 8,220.35. Both indices registered their one-week highs.
“Strong recovery seen in global markets was a strong reason for today’s market performance... Among other market moving events, the Mid-year Economic Analysis 2014-15 tabled in Parliament, which stated that GDP is expected to rise to 5.5% in 2014-15 against 4.7% in the previous fiscal also aided the rally,” said Hiren Dhakan, associate fund manager, Bonanza Portfolio.
Of the 30 Sensex stocks, 21 ended with gains led by ICICI Bank (up 2.95%), Hindalco (up 2.64%) and Coal India (up 2.49%).
For the week, however, markets ended almost flat as a slump in the Russian rouble sparked fears of financial contagion earlier in the week.
“Signs of slowdown in global economic growth was the major concern that led to selloff in the early part of the week,” said Sanjeev Zarbade, vice-president, private client group Research, Kotak Securities.
Analysts said markets are likely to tread cautiously till mid-January, before gaining speed ahead of the Budget.