Moneycontrol BureauThe Indian market started trade on a strong footing and it is likely to continue the same today. The SGX Nifty, an indicator of the market opening, was trading at 8206, up 66 points at 7:15 hours.
The Sensex surged over 560 points and the Nifty reconquered 8,100 with ease on Monday. The 30-share BSE Sensex surged 564.60 points or 2.15 percent to 26785.55 and the 50-share NSE Nifty jumped 168.40 points or 2.12 percent to 8119.30. The broader markets underperformed benchmarks as the BSE Midcap gained 1.8 percent and Smallcap rose 1.6 percent.
Global equities are likely to lend their support to Dalal Street today too. The US market rallied with the Dow Jones surging over 300 points as investors hope that the Fed won't hike rates this year.
Meanwhile, European stocks saw significant gains on Monday, after a weak US employment report dampened expectations that the Federal Reserve would start raising interest rates soon.
Asian index Nikkei index spiked to its highest level since September 17 while Kospi rose to their strongest level since August 11. And speculation among market participants is high that the Bank of Japan could announce a fresh round of monetary stimulus this month.In other asset classes, the US dollar gained against a basket of major currencies on renewed risk appetite in the wake of a disappointing US jobs report.
And Brent Crude climbed higher, bolstered by a rally in US gasoline and Russia's willingness to meet other major oil producers to discuss the market. Precious metal gold's prices remained largely unchanged at USD 1135 an ounce.
Meanwhile, the United States, alongwith 11 other nations in the Pacific Rim signed a historic Free Trade Agreement (FTA) that will aim to do away with import tariffs among member nations. The deal still needs final approval from individual governments. India's exports, however, will be adversely impacted.The trade deal, called one of the biggest of its kind in a generation, could yield global annual benefits of USD 295 billion by 2025, according to the Peterson Institute for International Economics.
Back home, Minister of State for finance , Jayant Sinha said banks have not done enough to pass on the rate cuts from the central bank. He added the Cabinet will take a call on discom debt very soon and says the first fund from the national investment and infra fund will be to tackle stressed assets.
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