Sensex rebounds as Economic Survey forecasts higher economic growth in FY14

Hectic short-coverings a day ahead of the presentation of the Union Budget amid hopes of rise in economic growth for 2013-14 as per Economic Survey announced on Wednesday helped the BSE benchmark S&P Sensex to recover by over 137 points to close at 19,152.41.

Firm global cues and coverings short positions ahead of the expiry of February series tomorrow too aided the market sentiment, a broker said.

Shares from capital goods, realty, refinery, metal, FMCG, power and PSU sectors attracted good buying support while Tuesday's most favourable IT counters suffered losses on profit-booking.

The pre-Budget Economic Survey tabled by Finance Minister P Chidambaram in Parliament on Wednesday projected the growth rate for 2013-14 at an optimistic level of 6.1-6.7 pct against a projected growth of 5.0 pct in current fiscal, claiming that the downturn is more or less over and made a strong call for cutting subsidies and called for widening of tax base to contain fiscal deficit.

The Bombay Stock Exchange 30-share gauge resumed higher but fell back to a low of 18,997.82 before rebounding to end at 19,152.41, a net rise of 137.27 points or 0.72 pct.

On Tuesday, it had tumbled by 316.55 points or 1.64 pct on global woes amid hike in freight rates by Railway Minister.

The 50-issue CNX Nifty of the NSE also bounced back by 35.55 points or 0.62 pct to 5,796.90.

Smart rise in heavyweights like ITC, L&T, ICICI Bank, ONGC, Bharti Airtel, RIL, M&M and HDFC mainly supported the recovery.