Business

Benchmark indices surge ahead of release of industrial production data

Share
Gaining over 350 points during the day the Sensex was at 33,630.39 points up 323.25 or 0.97% at 11am

Indian equity benchmarks traded on a strong note throughout the day and ended the session with heavy gains on tracking firmness in global cues after the latest United States jobs report assuaged fears around inflation and faster rate hikes.

Mumbai: Key indices zoomed nearly 2 per cent on Monday after strong U.S. jobs data fuelled a global rally in stocks. This is the biggest single-day gain since March 2016.

The benchmark BSE Sensex was up 280 points or 0.84 percent at 33,585 after falling over 2 percent last week against the backdrop of the PNB fraud investigation.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 33,468.16 points, traded at 33,630.87 points - up 323.73 points, or 0.97 per cent, from the previous session's close. Vinod Nair, head of research, Geojit Financial Services Ltd, said, "Inflation is expected to come down to 4.74% in February which will ease bond yield in the near term". "However, mid and small cap witnessed reluctance due to high valuation". But it also showed that annual growth in average hourly earnings had declined to 2.6% after rising in January.

Asian stocks from Tokyo to Sydney gained as trade war concerns took a backseat to economic optimism following a USA jobs report on Friday that showed that the American economy continued to strengthen without the prior month's rapid wage gains that stoked inflation fears. Japan's Nikkei finished up 1.7 per cent, Hong Kong's Hang Seng climbed 1.9 per cent and South Korea's Kospi ended one per cent higher. "Participants will react to macro-economic data - IIP and CPI inflation - in early trade on Tuesday".

Meanwhile, foreign investors have started to buy Indian equities after heavy selling seen in February.

Share