Sensex surges 500 points to 11-month high on global cues
MUMBAI: Benchmark equity indices Sensex and Nifty hit their highest levels in 11 months on Monday on the back of a global rally buoyed by strong US jobs data and a landslide victory for Japan’s ruling coalition in weekend elections, which boosted stimulus hopes.
Monsoon’s coverage of most parts of India and a stronger possibility of passage of the GST Bill in the Rajya Sabha also lifted investor sentiment.
The Sensex rose 499.79 points, or 1.8%, to 27,627, while the Nifty ended at 8,468, a gain of 144.70 points, or 1.74%
“Markets continued their uptrend supported by the strong non-farm payrolls data in the US,” said Dipen Shah, vice-presieconomic dent at Kotak Securities. “On the domestic front, increased hopes of passage of the GST Bill in the monsoon session of Parliament also improved sentiment. The GST Bill will be a big trigger for markets. While the global scene remains challenged, improving fundamentals of the Indian economy will likely lead to sustained growth for India and more foreign fund flows to the Indian markets.”
US employment figures rose most since October, indicating an improvement in business in the world’s largest economy.
The Sensex gainers were led by Adani Ports (up 4.7%), Tata Motors (up 4.1%), ICICI Bank (up 3.4%) and SBI (up 2.8%).
Among the sectoral indices, metal rose the most (up 2.46%), followed by auto (up 2.19%) and banking (up 2.07%). Mid-cap and small-cap indices rose 1.49% and 0.79%, respectively, on buying by retail investors.
According to analysts, investor focus will now shift to corporate earnings. TCS and Infosys are slated to come out with their results on Thursday and Friday, respectively.
(WITH PTI INPUTS)