Sensex mimics global markets, rises 600 points

Sensex mimics global markets, rises 600 points

Sensex mimics global markets, rises 600 points

Though it gave up some of the gains, it ended at a one-week high of 33917.94, up 610.55 points, or 1.83 per cent. Strong economic indicators have bolstered the US Federal Reserve's case for higher interest rates and have given fresh impetus to the bull market in global equities.

Indian benchmark equity indices clocked significant gains on Monday as an overall rally in the global markets on the back of strong data from the USA lifted sentiments.

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 gainers were ITC by 2.66 pc to Rs 266.30, Wipro by 2.09 pc to Rs 291.15, Infosys by 2.07 pc to Rs 1187.45 and Bharti Airtl by 1.60 pc to Rs 408.40.

China minister says trade war with United States would be 'disastrous'
Trump signed orders for stiff tariffs on steel and aluminum and indicated more actions are potentially on the way. As we reported earlier, new tariffs on aluminium import were adopted in the United States of America this week.

Vinod Nair, head of research, Geojit Financial Services said: "Firm global cues and expectation of ease in domestic inflation to 4.74 per cent excited investors to utilize the bargain opportunity".

Positive Asian stocks boosted sentiment on the domestic bourses while global stocks gained as worldwide trade-war concerns abated and were replaced by economic optimism following a stronger U.S. jobs report released over the weekend.

The US Labor Department said that non-farm payroll employment surged up by 313,000 jobs in February, the biggest gain since mid-2016. The index had lost 44.43 points in the previous session on Friday.

Short-covering during the later part of the day also helped stocks as investors were seen buying metal, oil & gas, FMCG, banking, power, infrastructure, IT, auto and capital goods stocks. Shares in the other Asian markets rose, taking positive cues from Wall Street where shares ended nearly 2 per cent higher on Friday. It was indeed a surprise up-move but sustainability above 10400 will be crucial for further recovery. The Nifty also gained close to 200 points to close above 10,400.

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