Sensex rallies 465 points on strong global cues, monsoon and GST hopes
India’s benchmark stock indices surged near 1.5% in early trade on Monday tracking firm global markets buoyed by a better-than-expected US jobs data. A good monsoon progress and increasing hopes of GST (Goods and Services Tax) getting passed also boosted sentiments.
The Bombay Stock Exchange’s Sensex opened up 0.9% over Friday’s close. It gained further and was trading at 27,592.01, up 465 points or 1.7%. The National Stock Exchange’s Nifty 50 Index was trading up 130 points or 1.6% at 8,453.65.
On Friday, the US markets had rallied after data showed 287,000 jobs were added in the US economy last month, which was well above median estimates and followed a weak jobs report in May.
That boosted stocks across Asia on Monday. Japan’s Nikkei Stock Average jumped 3.6%, after Prime Minister Shinzo Abe’s ruling coalition party won upper house elections in a landslide, which should boost his government’s economic reforms agenda.
In other markets, Hong Kong’s Hang Seng, Korea’s Kospi and Singapore’s Straits Times were all up over 1%.
“The strong US economic data no longer stokes worries of rate hike given the fact that the Federal Reserve would watch for the Brexit impact before making any move on the interest rates. Asian markets are mirroring the strong US rally and Indian markets get double boost from positive local cues in terms of good monsoon progress and the increasing possibility of GST approval as Congress indicates softening of it’s stand,” said Sageraj Bariya, vice-president institutional sales, East India Securities.
Among major gainers, Power Grid, NTPC and ICICI Bank were up around 3%; Bharti Airtel, Adani Ports and Tata Motors all were trading with more than 2% gains.
Larsen & Toubro also rose 2.3%; the over Rs 1,200 crore initial public offering of its software services unit L&T Infotech has opened for subscription on Monday. The issue comprises an offer for sale of up to 1.75 crore equity shares in a price band of Rs 705-710.
On Friday, L&T Infotech raised Rs 373 crore from anchor investors, which included Auburn Ltd, HDFC Trustee Company, Birla Sun Life Trustee Company, Max Life Insurance and NTAsian Emerging Leaders Fund.
Meanwhile Tata Steel shares were up 1%; the company had late Friday announced it had suspended the sale of its troubled UK arm. Late on Sunday, Germany’s Thyssenkrupp confirmed that it was in talks with Tata Steel for consolidation of ailing European steel mills.
-Source:- http://www.hindustantimes. com/business-news/sensex-rallies-465-points-on-strong-global-cues-monsoon-and-gst-hopes/story-91Lo6xrau3mcwGioMh0bmN.html