Season of cheer, Sensex soars

Finance Minister Pranab Mukherjee said the Indian economy could grow by 8% in 2009-10, aiding an optimistic mood in the equity markets where Sensex recorded a handsome 539-point gain in the biggest single-day jump in seven months.

Finance minister Pranab Mukherjee on Wednesday said the Indian economy could grow by 8 per cent in 2009-10, aiding an optimistic mood in the equity markets where the benchmark BSE Sensex recorded a handsome 539-point gain in the biggest single-day jump in seven months.

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The BSE Sensex closed the day at 17,231.11 points, up 3.2 per cent from from its previous close at 16,692 points, as zealous investors caught the rosy outlook which was strengthened by a bounce in world markets after overnight data in the US showed that the housing sector, which is at the heart of the American financial meltdown, performed better than expected.

Marketmen were also enthused by speculative reports that public sector oil companies may get cash instead of bonds from the government in return for pricing their fuels below market rates.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty closed at 5,144.6 points, a gain of 3.2 per cent or 158.8 points.

HT learnt the government is also planning a comprehensive calendar for disinvestments of public sector undertakings, which could also influence the upbeat market mood.

Mukherjee’s projections beat most analysts’ estimates including the finance ministry’s own forecast of 7.75 per cent growth detailed in the mid-year economic review tabled in Parliament last week.