MUMBAI: Equity benchmarks ended on a positive note for the fourth straight session on Thursday after the Economic Survey projected India's economic growth rebounding from a five-year low to 7 per cent this fiscal.
Investors also remained optimistic that the Modi 2.0 government's first Budget, to be presented Friday, will propose measures to boost consumption and revive growth, analysts said.
The 30-share BSE Sensex settled 68.81 points, or 0.17 per cent, higher at 39,908.06, while the broader NSE Nifty climbed 30 points, or 0.25 per cent, to 11,946.75.
Top gainers in the Sensex pack included Bharti Airtel, Tata Motors, IndusInd Bank, Kotak Bank, Hero MotoCorp, Asian Paints and PowerGrid, which rose up to 2.53 per cent.
On the other hand, Yes Bank, HCL Tech, Vedanta, Sun Pharma, Tata Steel, L&T, HDFC Bank and NTPC fell up to 3.56 per cent.
Market sentiment remained positive after the Economic Survey projected GDP growth at 7 per cent in 2019-20 from an estimated 6.8 per cent in the previous year, said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares and Stock Brokers.
"Investment rate has been seen picking up in FY20 on higher credit growth and improved demand. However, gains remained capped as some concern about monsoon rains in the week resurfaced," he pointed out.
The pre-Budget Economic Survey said India now needs to shift gears to accelerate and sustain a higher growth rate to become a USD 5-trillion economy by 2024-25
Authored by Chief Economic Adviser Krishnamurthy Subramanian, the survey stated that investment (especially private) is the 'key driver' that boosts demand, productivity and jobs.
Investors are now awaiting the fiscal road map and reform measures to be announced in the Budget, analysts said.
"Markets will take their cues from the finance minister and reward a pro-growth, pro-reform Budget," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
Sectorally, BSE telecom, realty, basic materials, FMCG and auto indices ended up to 1.53 per cent higher. Consumer durables, metal and healthcare declined up to 1.58 per cent.
In the broader markets, the BSE midcap index lost 0.19 per cent, while the smallcap gauge inched up 0.12 per cent.
Meanwhile, the Indian rupee appreciated 24 paise to 68.89 against the US dollar intra-day.
On the global front, stocks spurted on hopes that the US Federal Reserve will slash rates this month, to be followed by other central banks.
In Asia, bourses in Shanghai and Hong Kong ended in the red, while those in Tokyo and Seoul finished with gains. Equity markets in Europe were trading on a positive note in their respective early sessions.
Brent crude futures, the global oil benchmark, slipped 0.08 per cent to USD 63.77 per barrel.