Sensex rallies 301 pts ahead of IIP, inflation data

Sensex rallies 301 pts ahead of IIP, inflation data

Sensex rallies 301 pts ahead of IIP, inflation data

After opening on a strong footing, the Sensex gained 610.80 points (1.83%) to close at 33,917. This shows that the USA economy is experiencing a combination of high growth and low inflation. "Key benchmark indices started the day on a positive note and extended gains in afternoon trade to hit fresh day's highs as steady buying demand in index pivotals gave a fillip to the wider market".

The BSE benchmark Sensex today posted its biggest intra-day gain in almost two years by surging over 600 points to close at 33,917.94.

The gainers were ITC by 2.66 pc to Rs 266.30, Wipro by 2.09 pc to Rs 291.15, Infosys by 2.07 pc to Rs 1187.45 and Bharti Airtl by 1.60 pc to Rs 408.40. Vinod Nair, head of research, Geojit Financial Services Ltd, said, "Inflation is expected to come down to 4.74% in February which will ease bond yield in the near term".

Some global markets on Monday rose at least one per cent following similar gains in the United States on Friday, including a record close for the Nasdaq Composite at 1.79 per cent that followed a strong report.

The US Labor Department said that non-farm payroll employment surged up by 313,000 jobs in February, the biggest gain since mid-2016. But it also showed that annual growth in average hourly earnings had declined to 2.6% after rising in January. Shares in the other Asian markets rose, taking positive cues from Wall Street where shares ended nearly 2 per cent higher on Friday. Market participants are cautiously awaiting Consumer Price Index (CPI) and Index of Industrial Production (IIP) data.

The NSE Nifty50 fell by 15.80 points, or 0.15 per cent, to close at 10,226.85 points, while the BSE Sensex closed at 33,307.14 points - down 44.43 points or 0.13 per cent.

Trading was brisk across global markets.

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