Sensex jumps 565 pt on hopes US will delay rate hike

MUMBAI: Tracking firm global cues, the market benchmark Sensex closed at one and a half months high of 26,785.55 on Monday with a surge of 564.60 points as inventors sensed diminishing chances of the Fed rate hike in the near future after a weak US jobs report.

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 single-day percentage gain in nearly 9 months. Investor wealth rose by R1.84 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.

On Monday, Tata Motors and Tata Steel were the top gainers on Sensex, with both surging close to 6%.