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Markets make a splash, Sensex zooms 500 points to 11-month high

The 50-share NSE Nifty recaptured the 8,400-mark before closing at 8,467.90, gain of 144.70 points, or 1.74 percent.


Markets make a splash, Sensex zooms 500 points to 11-month high

Mumbai: Stocks were on fire today as the Sensex rocketed 500 points to close at an 11-month high of 27,627 and the Nifty above 8,400 on across the board buying amid robust global cues after a solid US jobs report.

It is the biggest single-day gain in over a month for the Sensex.

Sentiment moved many notches higher following a rally in global equities as investors cheered a strong US jobs report while a landslide victory for Japan's ruling coalition in weekend elections boosted stimulus hopes.

 

Investor focus now shifts to the first leg of corporate earnings. TCS and Infosys are slated to come out with their results on Thursday and Friday, respectively.

Monsoon's progress, its coverage of most part of India and a stronger possibility of passage of the deadlocked GST Bill in Rajya Sabha offered more positives.

After starting higher, the Sensex ended at an 11-month high of 27,626.69, up 499.79 points, or 1.84 percent -- its biggest single-day gain since May 25 when it had risen 575.70 points.

Today's closing is highest since August 19 last year when it ended at 27,931.64.

The 50-share NSE Nifty recaptured the 8,400-mark before closing at 8,467.90, gain of 144.70 points, or 1.74 percent.

"Positive US jobs data and expectations of a good start to the first quarter earnings season helped the market rally," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

"Market participants expect the rising stability in the US economy is unlikely to support the Fed to make any changes in the interest rate in the near term due to the prevailing ambiguity caused by Brexit. This will provide space to EMs like India to attract foreign funds."

Most other Asian markets closed on a strong footing following a strong weekend rally in the US.

Japan's Nikkei remained at the forefront, jumping 3.98 percent, followed by Hong Kong's 1.54 percent, Singapore's 0.97 percent and the Shanghai Composite's 0.23 percent.

European bourses are too trading firmly higher, with Frankfurt' DAX up 1.20 percent, Paris CAC 0.70 percent and UK's FTSE 0.70 percent.

Meanwhile, FPIs net bought shares worth Rs 330.62 crore on Friday, as per provisional data from the stock exchanges.

The domination was near complete, as 29 scrips out of 30-share Sensex pack ended higher while Axis Bank lost.

Adani Ports was the top gainer by rising 4.78 percent. Tata Motors went up 4.15 percent after the company's Jaguar Land Rover reported 22 percent jump in global retail sales in first half the year.

So did ICICI Bank (3.44 percent), SBI (2.84 percent), Maruti Suzuki (2.84 percent), Coal India (2.84 percent), Tata Steel (2.72 percent) and Hero MotoCorp (2.52 percent).

Among BSE sectoral indices, metal rose the most by 2.46 percent, followed by auto 2.19 percent, banking 2.07 percent, PSU 2.06 percent and realty 2.05 percent.

Mid-cap and small-cap firmed up 1.49 and 0.79 percent, respectively, on fresh buying by retail investors.

Global rating agency Moody's today said the UK's decision to leave the European Union is unlikely to impact Asia-Pacific sovereigns, but external dependence may pose vulnerability for some. This was lapped up by investors as well, traders added.

The market breadth remained strong as 1,718 stocks advanced, 1,040 declined and 187 ruled steady.

Total turnover rose to Rs 3,286.93 crore, from Rs 3,131.31 crore last Friday.

From Zee News

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