With a strong rally in equities due to robust global cues after a solid US jobs report, BSE benchmark Sensex surged 500 points on Monday to close at an 11-month high of 27,627, while the Nifty stayed above 8,400-level on across the board of indices. Having the biggest single-day gain in over a month domestic stocks were on fire, cheering the investors in their buying spree.
Similarly, the rupee also surged by another 24 paise to close at a more than 3-week high of 67.13 on persistent selling of US dollars by bank and exporters amid massive rally in domestic equities.
Besides, banking, auto sector stocks and index heavyweights such as HDFC, ITC and Infosys led rally for the two key indices, keeping the market breadth strong as 1,718 stocks advanced, 1,040 declined and 187 ruled steady. Total estimated turnover rose to Rs 3,286.93 crore from Rs 3,131.31 crore in the last session on Friday.
Ahead of corporate earnings for the first quarter, markets behaved positively in both the indices. For instance, IT giants like TCS and Infosys are slated to come out with their results on Thursday and Friday, respectively. Also, 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 on Dalal Street.
After starting higher, the Sensex ended at an 11-month high of 27,626.69, up 499.79 points, or 1.84 per cent -- its biggest single-day gain since May 25 when it had risen 575.70 points. On Monday’s closing is highest since August 19 last year when it ended at 27,931.64.
Similarly, the 50-share NSE Nifty recaptured the 8,400-mark before closing at 8,467.90, gain of 144.70 points, or 1.74 per cent. “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,” he added.
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 per cent, followed by Hong Kong’s 1.54 per cent, Singapore’s 0.97 per cent and the Shanghai Composite’s 0.23 per cent.
European bourses were too trading firmly higher, with Frankfurt’ DAX up 1.20 per cent, Paris CAC 0.70 per cent and UK’s FTSE 0.70 per cent. 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 per cent. Tata Motors went up 4.15 per cent after the company’s Jaguar land Rover reported 22 per cent jump in global retail sales in first half the year.