Sensex up 565 pts on hopes Fed won’t hike rates in a hurry

MUMBAI: Stock markets gained on Monday, with the Sensex jumping 565 points, tracking strong gains in overseas markets, after a weak jobs data in the US suggested that the Federal Reserve was unlikely to hike interest rates anytime soon.

The BSE benchmark closed at 26,785.55, up 564.60 points, or 2.2%, its biggest singleday percentage gain in nine months. Investor wealth rose by ` 1.84 lakh crore with the total market capitalisation of BSE-listed companies at ` 98,39,357 crore at the end of Monday’s trade.

The rupee surged 22 paise to close at a seven-week high of 65.29 against the US dollar on persistent selling of the American currency by banks and exporters.

Stock markets gained on Monday, with the Sensex jumping 565 points, tracking strong gains in overseas markets, after a weak jobs data in the US suggested that the Federal Reserve was unlikely to hike interest rates anytime soon.

The BSE benchmark closed at 26,785.55, up 564.60 points, or 2.2%, its biggest single-day percentage gain in 9 months. Investor wealth rose by ` 1.84 lakh crore with the total market capitalisation of BSE-listed companies at `98,39,357 crore at the end of Monday’s trade.

The Nifty rose 168.40 points, or 2.1%, to 8,119.30.

Some analysts believe that the Fed is unlikely to raise interest rates till the first quarter of 2016, which could lift the pressure of emerging market equities, including India, which have seen foreign institutional investors pull out in the last few months.

“We believe that the chances of a robust Santa Claus rally in emerging markets assets are quite bright,” said Sageraj Bariya of East India Securities.

The rupee surged 22 paise to close at a seven-week high of 65.29 against the US dollar on persistent selling of the American currency by banks and exporters.