Global rally post US jobs data lifts Sensex 611 points

Global rally post US jobs data lifts Sensex 611 points

Mumbai, Mar 12: Bulls were back with vengeance to cover the lost ground at Dalal Street on Monday as benchmark indices gained nearly 2 percent, driven by global rally after better-than-expected US jobs data. Investors awaited February CPI inflation and January industrial output data due later today. The market had lost more than 2 percent last week.
Short covering triggered in later part of the session and almost all the sectoral indices participated in the rally. In fact, the Nifty PSU Bank index trimmed losses to half a percent from 3 percent.
The 30-share BSE Sensex saw the biggest one-day gain in last 17 months, rising 610.80 points or 1.83 percent to close at 33,917.94.
The 50-share NSE Nifty saw the biggest single day percentage gains for the first time in last 22 months, up 194.50 points or 1.90 percent at 10,421.40.
“It was indeed a surprise up move but sustainability above 10,400 will be crucial for further recovery,” Jayant Manglik, President, Religare Broking said.
He suggests traders limiting leveraged positions and continuing with stock specific trading approach.
“Nifty close above 10,350 gives more space for a target of 10,535 – the next possible resistance,” Prashanth Tapse, Associate VP, Mehta Group said.
On the global front, Asian stocks got off to a strong start to the week, with regional markets closing higher following positive lead from the Wall Street on expectation-topping US jobs data. Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi gained 1-2 percent.
European stocks were also trading higher as France’s CAC gained 0.3 percent and Germany’s DAX was up 0.6 percent at the time of writing this article.
Midcaps also participated in the rally and recovered sharply from day’s low, but still underperformed frontliners. The Nifty Midcap index was up 1 percent despite balanced market breadth.
About 1,381 shares advanced against 1,341 declining shares on the BSE.