Benchmark index BSE Sensex surged over 600 points intraday on Monday on account of firm global cues. The BSE Sensex and NSE Nifty advanced 568 points and 182 points to 23,554.12 and 7,162.95, respectively.
Here are top 5 reasons which supported market sentiments during the day:
1. Firm Asian cues: Asian shares were trading higher and snapped a five-session losing streak on Monday as a strong fix for China’s yuan eased devaluation concerns and Shanghai stocks returned from the Lunar New Year holidays with only modest losses. The Shanghai Composite Index eased 2.2 per cent in its first session since Feb. 5, a relatively benign move given the wild swings seen worldwide recently. The US Dow Jones Industrial Average ended 2 per cent higher on Friday.
2. Value Buying: A flurry of buying by investors in blue-chip stocks available at an attractive levels helped the Sensex gain. Out of 30 components in the BSE Sensex, 29 were trading in green in the morning trade.
3. Strong rupee: The Indian currency strengthened by 11 paise to 68.12 against the dollar in early trade at Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid higher opening in the domestic equity market.
4. Prime Minister Narendra Modi’s statement that said that India is the fastest developing country among the “larger economies of the world” also helped the market sentiments. He said that India is the nly economy which has not been affected by the global economic crisis that has hit the world, primarily due to the policies being implemented by the government.
5. Strong European markets: European shares also opened sharply higher on Monday on the back of gains in Asia where the Nikkei surged more than 7 per cent and a stronger fix of the yuan eased devaluation concerns. By 0822 GMT, the pan-European FTSEurofirst 300 index rose 2.5 per cent to 1,262.59 points, while the Euro Stoxx 50 index was also up by a similar amount.