Indian stock market closed at fresh record highs on Monday after Economic Survey 2017-18 said the country is likely to register 7-7.5 per cent growth in 2018-19, up from 6.75 per cent expected in the current fiscal.
The Survey tabled by the government in parliament today said the GDP will grow on the back of major reforms which would be strengthened further in the next financial year.
“A series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 per cent this fiscal and will rise to 7.0 to 7.5 percent in 2018-19, thereby re-instating India as the world’s fastest-growing major economy,” the Survey said.
The survey bolstered India’s position among the best performing economies in the world as it projected country’s average growth during last three years as around 4 percentage points, which is higher than the average global growth rate and nearly 3 percentage points higher than that of emerging markets and developing economies.
“The positive sentiment in the market was given a boost after Economic Survey showed that Indian economy is expected to expand at 7-7.5% in 2018-19. However, it also highlighted that against the emerging macroeconomic concerns, policy vigilance will be necessary in the coming year, especially if high international oil prices persist,” said Karthikraj Lakshmanan, Senior Fund Manager – Equities, BNP Paribas MF.
Taking cue from the development, Sensex jumped 233 points to close at 36,283 on Monday, while Nifty50 climbed 61 points to settle at 11,130.
Both the key indices Nifty50 and Sensex scaled fresh record highs of 11,172 and 36,444, respectively, on Monday.
Positive global cues and buying in auto, IT and financials coupled with optimism on Union budget on February 1 created the upbeat momentum for markets.
Investors were seen enlarging ther portfolios at the beginning of the February series in the derivatives segment.
Among the gainers, Maruti Suzuki India surged nearly 4 per cent after the company on Thursday reported 2.96 per cent rise in net profit at Rs 1,799 crore for the third quarter ended December 31.
HDFC also remained among the top gainers after the company on Monday reported over three-fold jump in standalone net profit at Rs 5,670.21 crore for December quarter.
Eicher Motors, UPL, Tata Consultancy ServicesBSE 2.48 % and Bharti Infratel too cloaked significant gains on Monday.
Dr. Reddy’s Laboratories emerged as the top drag on the Nifty50 index on Monday. The scrip plunged nearly 6 per cent on its poor earnings for December quarter. On Thursday, the company reported a 28.86 per cent YoY drop in net profit at Rs 334 crore for the third quarter of fiscal 2017-18.
LupinBSE -3.72 %, GAIL (India), Bharti Airtel, Hindustan Petroleum Corporation, Bharat Petroleum Corporation and ITC were the other top losers of the day.
Asian peers extended their upward movement on Monday on the back of better earnings and global cues. European stocks were trading mixed with tech stocks gaining while utilities, food and beverage and real estate stocks tumbled, reported.>