MARKET COMMENT Jayant Manglik, President, Religare Broking It's being an exceptional day for equity markets as Nifty gained nearly two percent and reclaimed 10400. It opened gap up, tracking firm global cues and traded range bound in the first half. However, short covering in the latter half triggered fresh momentum in the latter half and almost all the sectoral indices participated in the move. It was indeed a surprise up move but sustainability above 10400 will be crucial for further recovery. Participants will react to macro-economic data i.e. IIP and CPI inflation in early trade tomorrow. We suggest traders limiting leveraged positions and continuing with stock specific trading approach
The domestic indices ended nearly 2% higher on Monday, mirroring gains in their key Asian counterparts.
The S&P BSE Sensex ended at 33,918, up 611 points while the broader Nifty50 index settled at 10,421, up 195 points. This was the biggest intra-day gain for the indices in almost a year, data show.
In the global markets, a relief rally swept across Asia on Monday after the latest US jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally.
MSCI’s index of Asia-Pacific shares outside Japan climbed 1.3 per cent, poised for a third session of gains. Japan’s Nikkei jumped 1.6 per cent.
Inflation worries faded on Friday after US data showed nonfarm payrolls jumped by 313,000 jobs last month, but annual growth in average hourly earnings slowed to 2.6 per cent after a spike in January.
Back home, the Nifty FMCG index ended 2.62% higher on Monday, led by a rise in the shares of United Spirits, ITC and Tata Global Beverages, while the Nifty Metal index rose 2.14% as Jindal Stainless (Hisar), Jindal Steel & Power and Steel Authority of India Limited gained ground. (with inputs from Reuters)