Benchmark BSE Sensex jumped by nearly 567 points and Nifty closed above 25,900 on Monday following a sharp rally in global markets as softer-than-expected US inflation reignited hopes of Fed rate cuts this year.
The 30-share BSE Sensex jumped 566.96 points or 0.67 per cent to settle at 84,778.84. During the day, it surged 720.2 points or 0.85 per cent to 84,932.08. The 50-share NSE Nifty climbed 170.90 points or 0.66 per cent to 25,966.05.
Prospects of a US-China trade deal and fresh foreign fund inflows also added to the markets' optimism. Among Sensex firms, Bharti Airtel, Reliance Industries, Eternal, State Bank of India, Tata Steel and HDFC Bank were the major gainers. However, Kotak Mahindra Bank, Bharat Electronics, Infosys and Bajaj Finance lagged.
The PSU Banks index outperformed among sectoral indices, rallying 2.76 per cent, whereas defence and media shares fell due to profit booking.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled sharply higher. Markets in Europe were trading on a mixed note. US markets ended in positive territory on Friday. Foreign Institutional Investors (FIIs) bought equities worth Rs 621.51 crore on Friday, according to exchange data. Meanwhile, global oil benchmark Brent crude declined 0.85 per cent to USD 65.38 a barrel.
The domestic market witnessed a broad-based recovery owing to progress in the US-China trade talks. Softer-than-expected US Consumer Price Index (CPI) data renewed expectations of a Fed rate cut this week, boosting investor confidence. Easing global headwinds, coupled with strong domestic reforms, provided cues for domestic earnings growth.
On Friday, the Sensex dropped by 344.52 points or 0.41 per cent to settle at 84,211.88. Nifty declined by 96.25 points or 0.37 per cent to 25,795.15.
Also read: Sensex falls 344 pts after six-day rally
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