Sensex Races To 11-Month High On Global Cues, Nifty Above 8400

The equity markets, which were also buoyed by a healthy progress of monsoon season, short covering and a strong rupee, closed with gains of more than 1.5 per cent.

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%, Singapore’s 0.97 % and the Shanghai Composite’s 0.23%.

European bourses are 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.

Foreign institutional investors were net buyers to the tune of Rs 1,056 crore on Monday, according to data provided by exchanges.

The Sensex touched a high of 27,607.99 points and a low of 27,358.23 points in the trade so far.

Some of the leading stocks that gained on Monday were Adani Ports, Coal India, Tata Motors, Hero Motocorp, Lupin, Bank of Baroda, HDFC Bank and ICICI Bank while HCL Technologies, Axis Bank and IndusInd Bank ended among the losers. Among BSE sectoral indices, metal rose the most by 2.46%, followed by auto 2.19%, banking 2.07%, PSU 2.06% and realty 2.05%. The BSE small-cap index underperformed, gaining just 0.8 per cent.

Benchmark Sensex surged over 464 points to an nearly 9-month high of 27,591 and the NSE Nifty retook the 8,400-mark in early session today, primarily driven by a flurry of buying activity, reflecting firm Asian cues.

The US Dow Jones Industrial Average ended 1.40 per cent higher on Friday. The robust jobs data may propel US Fed to hike the interest rate, forecast market analysts.

The goods and services tax or GST, which started as the biggest tax reform since independence, may be passed in parliament soon.

Domestic macro indicators have been improved over the last few years due to the number of global brokerages that have turned “overweight” on India. This was lapped up by investors as well, traders added.

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