Market update: Sensex surges 245 points on GDP growth forecast

The benchmark Bombay Stock Exchange (BSE) index Sensex on Friday rallied over 245 points, extending gains for the second straight session, to end the week at 27,371.84 as the government's projection of 5.5 per cent GDP growth boosted economic sentiments.

The strong buying momentum over the past two sessions has been driven by a firming trend on global markets after the US Federal Reserve said on Wednesday that a rate hike was unlikely in the short-term, brokers said.

Expectations of acceleration in reforms process after the Cabinet's clearance to the Constitutional Amendment Bill on Goods and Services Tax (GST) too triggered buying activity, they said.

The 30-issue BSE barometer, after opening on a strong note at 27,292.55, continued its upward journey to hit an intra-day high of 27,497.12. But, profit-booking towards the fag-end at improved levels trimmed gains to an extent and the gauge finally settled 245.27 points (or 0.90 per cent) higher at 27,371.84.

Stocks of heavy-weight Reliance Industries (RIL) hogged the limelight on a flurry of buying and closed with a surge of 2.26 per cent, at Rs 900.15, on speculations that the company may launch its much-awaited telecom services in 2015, rendering major support to the indices.

The Sensex had gained 416.44 points in Thursday's trade.

As many as 21 of the 30 Sensex scrips ended with gains, led by Hindalco, ICICI Bank, Tata Power, Sesa Sterlite, Wipro, TCS, Coal India, L&T, NTPC, Dr Reddy, Infosys, HDFC Ltd, Tata Steel, ONGC, M&M and Tata Motors and rose between 0.20 and 2.95 per cent.

Sectorwise on the BSE, the IT index gained the most by soaring 1.95 per cent followed by Metal index (1.79 per cent), Oil & Gas (1.48 per cent), Capital Goods index (1.29 per cent), Power index (1.28 per cent) and Banking index (0.75 per cent). Small-cap index also rose 0.57 per cent and Mid-cap Index by 0.36 per cent.

On similar lines, the broader 50-share National Stock exchange (NSE) index Nifty, after shuttling between 8,263.45 and 8,208.60 points, closed with a gain of 65.90 points (or 0.81 per cent) at 8,225.20.

Meanwhile, the Finance Ministry's 'Mid-Year Economic Review' has said that the country's GDP is expected to rise to 5.5 per cent in the current 2014-15 financial year from 4.7 per cent in FY14 on back of improving macro-economic situation.

Globally, trends at other Asian markets too remained bullish and European markets were higher in their opening trade, influencing trading sentiments on the domestic front.