“The global markets have aided the rally”.
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Monsoon’s coverage of most part of India and a stronger possibility of passage of the deadlocked GST Bill in Rajya Sabha gave more reasons to cheer.
Following global cues, European shares, too, hit an 11-month high, with the London Stock Exchange’s FTSE rising nearly 1% during the intra-day trade. He also said that today, the economy is far healthier compared to the past year of UPA II in all macroeconomic parameters.
“Positive US jobs data and expectations of a good start to the first quarter earnings season helped the market rally”, said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
Investor sentiment turned positive across the globe as upbeat USA jobs data last week soothed immediate concerns about the world’s largest economy.
Many analysts are hoping that US Federal Reserve will delay its rate hike due to Brexit, in spite of a large number of US jobs data.
After a disappointing May, the USA added 287,000 jobs in June, the strongest month of hiring since last October 2015.
The rally in domestic equities was caused by the large jobs data in the United States, which indicated that the world’s biggest economy is on the path of recovery.
In addition, data by Association of Mutual Funds in India (AMFI) for June showed robust investment activity by market participants.
With the news of a strong recovery emanating from the USA job market, Indian markets opened this week with a bullish trend.
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.
The Sensex touched a high of 27,607.99 points and a low of 27,358.23 points in the trade so far.
Meanwhile, FPIs bought net shares worth Rs 330.62 crore on Friday, as per provisional data from stock exchanges. 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%.
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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.
