Equity benchmarks in India surged on Monday after the Economic Survey stated that the economy is in a good position to take on the challenges that may arise in 2022-23.
The 30-share BSE Sensex registered an intra-day rise of more than 1,000 points before ending the day at 58,014.17. It closed 814 points higher than the previous closing mark. The broader 50-share NSE Nifty closed 238 points higher at 17,340.85.
Tech Mahindra, Wipro, Infosys and Reliance Industries were among the top gainers from the Sensex bracket. Among the Nifty stocks, Tech Mahindra, Bharat Petroleum Corporation Limited and Wipro were among the ones that registered the highest rise.
Ramesh Nair, chief executive officer for India of investment management company Colliers, said that the Economic Survey “infuses optimism for what lies ahead”, NDTV reported.
“The projection of 8-8.5% GDP growth for fiscal 2022-23 will be led by supply-side reforms and easing of regulations,” he said.
The Economic Survey, tabled by Sitharaman on Monday, predicted that India’s Gross Domestic Product will grow by 8% to 8.5% in the next fiscal year of 2022-’23.
Meanwhile, the survey pegged GDP growth in this fiscal year (2021-’22) at 9.2%. This is in line with the first advanced estimate released by the government’s National Statistical Office earlier this month.
Naveen Kulkarni, the chief investment officer at Axis Securities, said that predictions of economic growth in 2022-’23 appear very robust, according to the Economic Times.
“A reasonably strong nominal GDP growth means we are looking at a healthy next fiscal year,” Kulkarni said. “This will also mean that tax collections will continue to remain robust and economic revival will gain further traction. Based on these projections, we remain very constructive on the future prospects.”
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