Sensex ended 499.79 points to close at 27,626.69, while Nifty surged 144.70 points to settle at 8,467.90. (Photo: PTI)
The BSE Sensex rallied over 500 points on Monday, while NSE Nifty settled at almost 11-month high on account of firm global cues. Sensex ended 499.79 points to close at 27,626.69, while Nifty surged 144.70 points to settle at 8,467.90. The BSE Midcap index also hit its all time high.
Below are the reasons why stocks markets remained firm today
1. Asian markets ended higher on Monday after the latest US jobs report showed the world’s largest economy had added 287,000 jobs in June, far more than expected and the most since October. This was in contrast to May’s dismal payroll gain of 11,000.
2. US job growth data supported the market sentiments globally. It accelerated rapidly in June, surpassing even the most optimistic of forecasts. The US economy added 287,000 jobs last month, according to the Labor Department, smashing the consensus forecast of 175,000, and wiping off the table any lingering expectations that the Federal Reserve might cut interest rates in the coming months.
3. Sentiments also got a boost after NITI Aayog vice-chairman Arvind Panagariya said that the government has put the economy on the path of reform to achieve a high growth trajectory though there are significant lags between policy decisions and outcomes which need to be addressed. He also said that today, the economy is far healthier compared to the last year of UPA II in all macroeconomic parameters.
4. India Meteorological Department progress report about the monsoon also lifted the sentiments of the stock markets. It said that around 89 per cent of the country has received normal and excess rainfall, owing to a good amount of monsoon in several parts, while large parts of Gujarat have recorded deficiency of more than half.
5. Indian rupee was trading firm in early trade that also affected the market sentiments. Indian rupee traded higher by 26 paise at 67.11 against the US dollar in early trade as exporters and banks stepped up selling of the American currency.
Dipen Shah, senior vice president and head private client group research, Kotak Securities said, “Markets continued their uptrend, supported by the strong non-farm payrolls data in the US. On the domestic front, increased hopes of passage of the GST Bill in the monsoon session of Parliament, also improved sentiment.”