Domestic equity indices BSE Sensex and NSE Nifty surged over 1.5 per cent on Monday on account of buying in frontline blue chip counters. Sensex closed 460.36 points up at 25,688.86, while Nifty 50 settled 132.60 points up at 7,866.05.
Below are the reasons which are moving the markets today:
1) The sentiment got a boost as an underwhelming US jobs report helped reduce expectations about rate hikes from the US Federal Reserve.
2) Besides, appreciation in Indian rupee too aided sentiments. The rupee was trading strong by 11 paise at 66.43 at the time of equity markets closing on increased dollar selling by banks and exporters and due to capital inflows into the domestic equity market.
3) Buying got extended after European stocks extended initial gains after the latest data showed German manufacturing orders rebounded sharply in March 2016.
4) A statement by RBI Governor Raghuram Rajan on GDP further supported market sentiments on Monday. Rajan on Saturday said, “I have no problem with India’s growth. It is doing great. It could do better”.
5) Recent string of positive corporate results raised tentative hopes about an improving domestic economy.