Sensex closes 1% higher; Tata Global up 8% on Starbucks announcement

Thanks to the government's commitment to not waver from its planned borrowing, the Indian equity markets catapulted where Sensex jumped 180 points to close at 18762.74 (0.99 percent up ) and theNifty closed 54 points up at 5703.30 (0.95 percent).

The government has vowed to stick to its planned borrowing target of Rs 2 lakh crore for the year, underlining its will to curb it fiscal deficit and avoid a credit ratings downgrade.

The government today said fiscal deficit -gap between expenditure and revenue -could overshoot the Budget target and touch 5.3 percent of the GDP this financial year.

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Ratings firm Fitch today lowered India's growth projection for the current fiscal to 6 percent from 6.5 percent estimated earlier citing challenging economic outlook.

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Meanwhile, eight core industries grew at a slower pace of 2.1 percent in August, as against 3.8 percent in the same month last year due to negative growth in crude oil, natural gas, fertiliser and cement. During April-August this fiscal, the growth has slowed to 2.8 percent, from 5.5 percent in the year ago period, data released today, said.

Among sectoral indices, Auto, Metal and Capital Goods stocks were up.

After Group of Ministers (GoM) headed by Agriculture Minister Sharad Pawar on Thursday finalised the pharma pricing policy of 348 essential drugs, pharma stocks including Cipla (2.50 percent), Dr Reddy's Laboratories (1.52 percent) were up.

Stocks in news

Yes Bank today said that it has received the Reserve Bank nod to enter the equity broking business. The stock closed 0.33 percent higher.

Kingfisher Airlines is down 5 percent after banks rejected its working loan of Rs 200 crore.

Brokerage firm Macquarie has warned against United Spirits-Diageo deal and pointed out that the stock price ignores the risk of the deal falling through. The stock was down 5 percent today.

Tata Global Beverages, which is in a joint venture with global coffee chain Starbucks was up 8.30 percent after the latter announced that it will open its first outlet by October-end in Mumbai

United Breweries, United Spirits, JP Infratech were the losers on the index while Indian Hotels, Zee Entertainment posted gains