Ahead of Modi government's first full Budget, the benchmark Sensex on Friday logged its best daily gain in almost six weeks, spurting 473 points to regain 29000 level after Economic Survey made a strong pitch for big-bang reforms while projecting faster growth and improved fiscal situation.
The NSE Nifty index also sprinted by 161 points to close above the 8,800 mark, a day after Railway Budget disappointed participants due to lack of big announcements while the proposed hike in freight rates hit sentiments.
The Economic Survey 2014-15, tabled in Parliament on Friday, called for big-bang reforms, raising public investments to drive growth and improving business environment.
It forecast economy will grow by 8.1-8.5 per cent in 2015-16 and by 8-10 per cent in coming years. It stressed on the need for accelerated fiscal consolidation.
The BSE Sensex resumed higher at 28,865.12 and shot up further to 29,254.02 before ending at 29,220.12, showing a sharp gain of 473.47 points or 1.65%. This is its best daily gain since January 20, 2015. Similarly, the CNX 50-share Nifty rose by 160.75 ponts or 1.85%, to finish at 8,844.60 after hitting 8,856.95.
"Investing community was clearly encouraged by the Survey which pointed out that current macroeconomic scenario in India is more favourable than others. India has reached a sweet spot and there is scope for big-bang reforms now...this raises the expectations from Budget tomorrow," said Anand Rathi Financial Services, Sr. VP and Head - Equity Advisory, Devang Mehta.
Buying was across-the-board. Major gainers that supported the key indices to regain key levels include Tata Power, L&T, ICICI Bank, Hindalco, CIL, M&M, NTPC, ONGC and SBI.
Anticipating huge volatility during the special stock market trading on Budget day tomorrow, regulator Sebi and stock exchanges have enhanced vigil to keep manipulators at bay and ensure smooth operations. According to provisional figures, foreigners bought shares worth Rs 2,312.15 crore yesterday. Domestic institutions too were net buyers to the tune of Rs 340.79 crore.
Globally, Asian indices closed mixed while European benchmarks were trading lower.