The encouraging GDP numbers projected in the economic survey and the expectations from the first full fledged budget of the Modi government led to a massive rally on the bourses led by stocks from the realty, infra, metals and banking sectors.
Nifty ended the day higher by 160.75 points or 1.85% at its close of 8844.60, while the Sensex closed 473.47 points up or 1.65% at 29220.12on Friday, the first day of the new March series in F&O.
The economic survey released during market hours predicted a GDP growth of 8.1%- 8.5% in FY 16.
Wholesale price inflation, the survey said was likely to be below the central bank's target at 0.5 – 1% and the government was likely to keep the fiscal deficit within the targeted 4.1% in FY15.
Thus a lower inflation and comfortable fiscal situation will open up space for more monetary policy easing which will ultimately spur growth.
Post a growth-oriented railway budget and positive cues from the economic survey the expectations from the Union budget has increased among the traders.
According to Jagganadham Thunuguntla, head of research at Karvy Group, the growth number projected by the survey has been as per market expectations and that has helped give a boost to the markets.
Among the Nifty 50 stocks, 47 gained while 3 stocks declined. Stocks that gained by over 5% were Bank of Baroda, Tata Power and L&T.
Bank Nifty has seen a rollover of February series to an extent of 62.05%, which is lowest among the all index and stock futures.
Nifty, however, witnessed active rollovers from February series on Friday. According to Chandan Taparia, analyst at Anand Rathi Financial Services, the strong rollover in an overall bull run pumped up the markets on the first day, Friday. "Amidst high volatility before the budget, fresh buyers are entering the market," he added.
Foreign fund buying stood at Rs 1,957 crores while domestic institutional buying were in the red with net selling of Rs 491.93 crores.
The March series will remain range bound and largely trade between 8600 and 9200, said market players.
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