Sensex, Nifty end at record high as Economic Survey projects higher GDP in FY19

The domestic market settled at record closing high on Monday after the Economic Survey predicted growth would accelerate in fiscal year (FY) 2019, but bonds fell after it also recommended slowing down the move toward lower fiscal deficits.

The S&P BSE Sensex ended at 36,283, up 232 points, while the broader Nifty50 closed at 11,130, up 60.75 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap underperformed and shed up to 1 per cent. 

Market breadth, indicating the overall health of the market, turned weak with 1,879 declines over 968 advances. 

Economic Survey 2017-18

The Economic Survey released earlier in the day projected economic growth would be 7-7.5 per cent in FY19, up from a projected 6.75 per cent for the FY18.

The survey, an annual report the health of the economy, comes ahead of the release of the Budget 2018 on Thursday.

The survey also talked about the current stock market boom in India.
 
The S&P has surged 45%, while the Sensex has surged 46% in rupee terms and 52% in dollar terms, said the survey.

This has led to a convergence in price-to-earnings ratios of the Indian stock market to that of the US at a lofty level of about 26 per cent. Yet over this period, Indian and US economies have been following different paths, said the Economic Survey. 

Sectors and stocks 

Nifty Auto (up 1.4 per cent) was the leading sectoral gainer, led by gains in Eicher Motors (up 3.9 per cent), Maruti Suzuki (up 3.6 per cent) and Ashok Leyland (up 2.5 per cent). 

Nifty Bank ended at record closing high of 27,498.45, up 0.2 per cent. 

Among losers, Nifty PSU Bank (down 1.4 per cent), Nifty Pharma (down 1.1 per cemt), Nifty Realty (down 0.3 per cent) and Nifty FMCG (down 0.5 per cent) shed the most.

Among individual stocks, Eicher Motors (up 3.9 per cent), Maruti Suzuki (up 3.6 per cent), HDFC (up 3.2 per cent) and Bharti Infratel (up 2.6 per cent) were the top gainers on Nifty.