Markets surged in afternoon deals -- rebounding from the day's low after the Congress-led UPA government raised the growth projection for fiscal year 2013-14 while simultaneously lowering the Inflation target for Asia's third-biggest economy.
The Sensex after touching a low of 18,998 recovered on the back of realty and oil shares. The BSE benchmark index is now up 180 points at 19195. Nifty is up 52 points at 5,813.
India's economy may grow at 6.1-6.7% for the year 2013-14, the government forecast in a report on Wednesday, a day prior Finance Minister P. Chidambaram unveils a austere budget.
Further, the economic survey sees FY14 fiscal deficit at 4.8% while the current account deficit is seen at 4.6%.
The FY13 tax mop up is significantly lower than budget estimate. "While India's recent slowdown is partly rooted in external causes, domestic causes are also important," it said, adding boost to consumption coupled with supply side constraints led to higher inflation.
The rupee appreciated by 41 paise to Rs 53.68 against the dollar at the Interbank Foreign Exchange (forex) market on Wednesday on selling of the US currency by exporters.
BSE capital goods index added 2.3% at 9,496. Realty index was up 2.3% at 2,069. Oil & gas, PSU and metal indices are up 1-2% each. However, the appreciating rupee has dragged the IT index down 0.7% at 6,738.
Ranbaxy Laboratories is trading lower by 4% at Rs 400 in morning trades on NSE, extending its previous day’s about 4% fall, after reporting a lower-than-expected numbers on the profit front for the quarter ended December 31, 2012 (Q4).
Bharti Airtel is the top Sensex gainer, up by over 3.5% at Rs 323. Morgan Stanley raised its rating on Bharti Airtel Ltd to "overweight" from "equalweight," citing positive factors for the sector such as rising tariffs and data volumes, falling capital spending and eased competitive intensity.
ONGC, Larsen & Toubro, Mahindra & MAhindra and Bajaj Auto have aded 2-3% each. Reliance is the top mover - contributing 31 points to the Sensex's rise. ICICI Bank and SBI are up as well.
On the other hand, GAIL has slipped 1.6% at Rs 334. Infosys is down 1.5% at Rs 2915. Among other IT shares, TCS has slipped 0.7% while Wipro is up 1%, respectively.
Among other shares, Suzlon Energy has rallied almost 8% to Rs 22.85, after India’s largest wind-turbine maker said that it wins 103-megawatt (MW) order from Oil & Natural Gas Corporation Limited.
CORE Education and Technologies has tanked 44% at Rs 61.75 on back of heavy volumes on NSE despite the company clarifying that the pledged shares were not sold in the market. The stock opened at Rs 113 and hit a high of Rs 118 in morning trades on NSE.
BSE market breadth is neutral. Out of 2,763 stocks traded, 1,340 shares have advanced while 1,307 shares have declined.