Shares of capital goods, consumer durables and auto sectors rallied sharply in the afternoon session on Friday after the Modi government presented its Economic Survey in Parliament. Capital goods, consumer durables and auto shares powered the rally today. BSE Capital goods, consumer durables and auto shares were the top sectoral gainers with the indices zooming 2311 points, 1520 pts and 896 pts, respectively.
The Economic Survey said the production of capital goods fluctuated between FY20 and FY23. However, the production recorded a robust growth in FY24. This led to positive sentiment around the capital goods and consumer durables stocks.
"Yet, the growing reliance on the import of such goods poses a challenge. Due to technology gaps, this sector imports the high-end machines required for manufacturing. There is an urgent need to address the technology, skill and infrastructure gaps. The government has notified phase II of the Scheme for Enhancement of Competitiveness of the Capital Goods Sector. The objective of Phase II of the Scheme is to expand and enlarge the impact created by its Phase I. Phase II of the scheme promotes identification of technologies through technology innovation portals, setting up of new advanced centres of excellence and common engineering facility centres among others for enhancing the global competitiveness of capital goods sector," said Economic Survey.
On the auto sector, the survey said the industry recorded automobile domestic sales growth of 12.5 per cent in FY24.
It further said, "Recognising the sector's potential, the government has extended the PLI Scheme by one year."
"The Indian automobile industry is a significant driver of economic growth, offering a diverse range of domestically produced vehicles. In FY24, the industry recorded auto mobile domestic sales growth of 12.5 per cent. Recognising the sector's potential, the government has extended the PLI Scheme by one year," said the Economic Survey.
Meanwhile, Sensex climbed 754 pts to 77,514 and Nifty rose 274 points to 23,523 in the afternoon session today.