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Stocks jump to near 18-month high on weak US jobs data

By PTI
06 September, 2016

The benchmark Sensex extended its rally to hit fresh 16 month highs rallying 445.91 points to finish at 28,978.02, while broader marked 18 month highs to cross the crucial 8,900-level amid higher global cues.

Bulls took over as-soon-as the market re-opened after long weekend holidays with a bang, enthusiasm driven by strong domestic macro-datas also strengthened after the much awaited US Jobs data came in lower than estimated allowing the markets digest it, clearly reducing the chance of rate hike in September US FOMC meet.

A three-and-a-half year highs in domestic services sector growth, surged by new business orders amid improved market conditions, also perked up the momentum.

The market opened sharply supported by higher Asian peers and ruled in positive terrain following hectic across the board buying to end sharply higher.

The Sensex resumed gap-up at 28,631.27 and shot-up to an high of 29,013.40 before closing fresh 16-mth 28,631.27, showing a gain of 445.91 points or 1.56 per cent. (the index closed this near at 29,044.44 on Apr 13, 2015) 

The 50-share NSE Nifty also closed up by 133.35 points or 1.51 per cent to 18months highs to 8,943.00, after moving between a high of 8,950.85 and a low of 848.45 intra-day. (It touched 8,956.75 on Mar 2, 2015) 

Buying was led by Bankex, Consumer Durables, Auto, Industrials, Finances, Power, Utilities, Realty, Metal, Oil&Gas along with secondline shares of midcap and smallcap companies.

Elsewhere, Asian shares ended higher on prospects of US interest rate increase this month remained subdued. While European stocks rose following gains in Asian equities.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 231.19 crore last Friday, as per provisional data released by the stock exchanges.

The stock market had remained closed yesterday, 5 September 2016 on account of Ganesh Chaturthi holiday.

In overseas stock markets, European stock markets rose following gains in Asian equities. Asian shares gained as prospects for a US interest-rate increase this month remained subdued. Low US interest rates could support demand for emerging-market assets. Data on Friday, 2 September 2016 showed US employment growth slowed more than expected in August after two straight months of robust gains.

US markets were closed yesterday, for Labour Day holiday. Meanwhile, the Group of 20 major economies (G20) wrapped up their annual summit, held in Hangzhou, China, yesterday, with a stronger commitment to coordinate policies to support growth and promote trade liberalization.

The BSE Mid-Cap index was provisionally up 1.84 per cent, outperforming the Sensex. The BSE Small-Cap index was provisionally up 0.95 per cent, underperforming the Sensex.

Of the 30-share Sensex pack, 26 scrips ended higher.

Major gainers were Tata Motors (7.19 pc), Axis Bank (6.14 pc), ICICI Bank (4.25 pc), Tata Steel (3.25 pc), Maruti (3.04 pc), Asian Paints (2.97 pc), NTPC (2.35 pc), Gail (2.04 pc), SBI (2.01 pc), HUL (1.86 pc), Powergrid (1.77 pc) and M&M (1.43 pc).

However, TCS fell by 1.17 per cent followed by Coal India 1.11 per cent, Wipro (0.11 pc) and ITC (0.04 pc).

Among BSE sectoral and industry indices, bankex rose by 2.96 per cent, followed by consumer durables 2.94 per cent, auto (2.83 pc), industrials (2.22 pc), finance (2.17 pc), power (1.39 pc), utilities (1.38 pc) and realty (1.23 pc).

The market breadth remained positive as 1,627 shares ended higher, 1,125 closed lower while 204 ruled steady.

The total turnover rose to Rs 3,804.43 crs from Rs 3,735.02 crs on last Friday.

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Stocks jump to near 18-month high on weak US jobs data

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