It was cheerful Friday for the markets after sell off on Thursday despite of a constructive rail budget. A day before the Union Budget to be presented, optimism has created by the economic survey for 2014-15 which further raised expectations from today’s Union Budget. The markets yesterday were not in a mood to see look back and all indices except FMCG index were closed in green with good gains on bourses. The benchmark indices BSE Sensex and NSE Nifty were up by 1.65 and 1.85 per cent at 29220 and 8845 respectively.

The survey stated that India will post more than 8 per cent growth next year. The primary reasons for India to do so are new political authority, reforms, low inflation predominantly due to global commodity prices, low interest rates and the prospect of a good monsoon. Further, the government will adhere to its fiscal deficit target of 4.1 per cent of GDP in FY2015 and further fiscal consolidation will continue in years to come. Markets welcomed the survey’s growth predictions and optimism.

The European markets showed good optimism over the Greece’s successful bailout extension, ongoing quantitative easing, moderating deflationary concerns, decline in the equity risk and stronger European growth. The French stock market index CAC 40 and the German stock market index DAX surged by 0.83 and 0.66 per cent to 4952 and 11402 during the yesterday’s trading session. The UK FTSE closed at 6947, marginal down by 0.04 per cent.

The US markets too closed negative during yesterday’s trading session after gaining heaftily during the month of February. The major indices closed the week roughly where they started it. The S&P 500 and Dow industrials closed at 2105 and 18117, down by 0.30 and 0.13 per cent respectively. The Nasdaq too closed in red at 4964, up by 0.49 per cent. a hefty February month rise in US stocks was predominantly due to key drivers such as crude price stabilization, accommodative central bank policies around the world and resolution of Greece debt drama.

Today, being Saturday, the Asian markets except India were closed. The Indian market will be open as the finance minister will present the Union Budget for FY2015-16. The rail budget could not give cheer to market despite of a good budget as the expectations were still high from the railway minister. Similarly, the markets too have considerable expectations from the Union Budget and the finance minister fails to deliver up to the mark in today’s budget, the market will correct in days to come. As the Budget has good significance for the equity markets, the budget will give direction to the market today. 

Meanwhile, the per market barometer of the Indian market SGX Nifty was trading strong at 8959 with a handsome gains of 65 points in the morning. The domestic market will open strong in the morning.