Market sentiments improve, Sensex surges over 200 points

Benchmark indices have closed higher, amid volatile trading session led by FMCG and IT shares.

Meanwhile, the Centre's fiscal deficit ballooned to almost 63% of Budget Estimates for 2013-14 in just first four months of the year.

The deficit stood at Rs 3.40 lakh crore (Rs 3.4 trillion) in April-July period, which was 62.8% of Rs 5.42 lakh crore pegged in the Budget, according to data released by the Controller General of Accounts (CGA).

The 30-share Sensex ended up 219 points at 18,620 and the 50-share Nifty ended up 63 points at 5,472.

Prime Minister Manmohan Singh said that the rupee's tumble is a "matter of concern" but is part of a needed adjustment due to India's large current account deficit.

Singh said that rupee depreciation will see upward pressure on inflation, but added that RBI will work on containing it.

Indian economy will grow at about 5.5% in the current fiscal and the first quarter numbers are expected to be relatively flat, Prime Minister Manmohan Singh said today.

The key trigger for markets now will be first quarter GDP data scheduled later today.

Moody's Analytics, the research and analysis wing of Moody’s expects the Gross Domestic Product (GDP) growth for the first quarter to be at 4.5%.

On the global front, Asian stocks rose and oil prices tumbled as a possible U.S. military strike on Syria appeared less likely, while the dollar remained not far from a three-week high against a basket of currencies after upbeat US growth data.

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Back home, the rupee slid back towards a record low on Friday, with investors braced for a statement on the state of economy from Prime Minister Manmohan Singh and the release of data that was expected to show India in the grip of a protracted slowdown.

At 3:50 PM, the india rupee was quoting at 66.31/dollar.

Weak economic growth, a record high current account deficit and concerns about the government's finances are proving a toxic mix for the rupee, which hit a record low of 68.85 on Wednesday after falling around 20 percent since May.

On the sectoral front, BSE Consumer Durables, Bankex, Healthcare, FMCG, IT, PSU and Oil & Gas indices gained between 1-2%. However, BSE Metal index tumbled by over 2%.

The main gainers on the Sensex were Bajaj Auto, TCS, Cipla, HDFC, HDFC Bank, HUL, Dr Reddy’s and GAIL, all surging between 2-5%.

Wipro hit a 52-week high on Friday as analysts foresee better growth prospects for the company.

Shares of information technology (IT) companies continue at their upward march on expectation of rupee depreciation will benefit margins of IT services companies.

Most of the frontline stocks such as Tata Consultancy Services (TCS) and HCL Technologies were at their record high, while Wipro, Tech Mahindra and Infosys are quoting at their 52-week high on the BSE.

Shares of real estate companies ended higher by up to 5% after the Lok Sabha passes land acquisition bill.

Anant Raj Industries, Indiabulls Real Estate, Housing Development and Infrastructure (HDIL), Unitech, Peninsula Land and DLF ended higher in the range of 1-6% on BSE.

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Jindal Steel was the top Sensex loser, down over 9% on report that the Coal Ministry has set up a probe panel to review the status of Naveen Jindal-promoted company’s two coal blocks in Chhattisgarh.

Nearly three years after listing, shares of state-run Coal India, for the first time, traded below its initial public offering (IPO) price. The stock touched a record low of Rs 238.35 today compared to previous day’s close of Rs 250 on the BSE.

Other notable losers were Sesa Goa, Tata Motors, Hindalco and Tata Steel, all declining between 2-4%.

Sesa Goa ended lower after rallying over 45% in past eight trading days on BSE, as shares allotted in its recently completed schemes of amalgamation and arrangement will soon hit the market.

Among other shares, Financial Technologies (India) plunged nearly 20% to Rs 113 on back of heavy volumes.

M&M Financial Services surged nearly 8% ahead of entry of the company in the MSCI India Index with effect from September 2, 2013.

The market breadth in BSE ended positive with 1,158 shares advancing and 1,072 shares declining.