The Indian benchmark indices on Monday surged after their worst week in a month, as the BSE Sensex rose 1.83% or 610.8 points to 33,918, while the broader National Stock Exchange Nifty closed at 10,421 points – 194.55 points higher than the previous session’s closing.
All the sector indices that the BSE compiles ended higher, led by the S&P BSE Telecom index, which gained 2.57%. Bharti Airtel, ITC Limited and the National Thermal Power Corporation were the top gainers in the two indices.
A global rally after better-than-expected jobs data in the United States affected the market sentiment, which was also buoyed ahead of India’s industrial production data, which will be released in a few hours.
Non-farm payrolls data in the United States, which was released on Friday, showed that the economy had added 3,13,000 jobs in the past month, Reuters reported. But it also showed that annual growth in average hourly earnings had declined to 2.6% after rising in January. This shows that the US economy is experiencing a combination of high growth and low inflation. This incentivises investors to buy assets such as equities and high-yield bonds without having to fear strict central bank policies.
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