Sensex Jumps Over 300 Points, Nifty Above 11,950
Domestic stock markets started Monday's session on a higher note tracking gains in Asian peers. The S&P BSE Sensex index rose as much as 337.74 points to touch 39,953.64 in early deals, and the NSE Nifty climbed to 11,969.50, up 98.85 points from the previous close. Strength across sectors, led by banking, financial services and metal shares, led the upmove in the markets.
At 9:16 am, the Sensex traded 303.77 points - or 0.77 per cent - higher at 39,919.67 while the Nifty was up 71.20 points - or 0.60 per cent - at 11,941.85.
Top gainers on the 50-scrip benchmark index at the time were Indiabulls Housing Finance, Yes Bank, IndusInd Bank, Vedanta, Zee Entertainment and State Bank of India (SBI), trading between 1.33 per cent and 2.52 per cent higher.
HDFC Bank, Reliance Industries and Tata Consultancy Services (TCS) contributed the most to the advances in Sensex.
Reserve Bank of India Governor Shaktikanta Das has said the central bank would closely monitor the health of non-banking financial companies (NBFCs). The RBI would not hesitate to take corrective measures, if needed, to address issues in the shadow banking sector. The comment comes at a time when there are fears that the NBFC sector may be facing a major crisis.
"We will not hesitate to take any required steps to maintain financial stability in the short-, medium- and long-term," Mr Das said.
Equities in other Asian markets rose amid easing concerns on the US-Mexico trade front, with MSCI's index of Asia-Pacific shares outside Japan rising 0.7 per cent, led by strong gains in Hong Kong and Indonesia, and Tokyo's Nikkei advancing 1.1 per cent.
Global investors had feared that opening up another trade conflict, while still battling with China, could tip the US and other economies into recession.
US stock futures rose after the United States dropped its threat to impose tariffs on Mexico in a deal to combat illegal migration from Central America, and as weak US jobs data raised hopes for rate cuts in the world's largest economy.
The 10-year US Treasuries yield jumped back 3.5 basis points to 2.119 per cent, after hitting a 21-month low of 2.053 per cent on Friday.
The Sensex and Nifty had ended 0.22 per cent and 0.23 per cent higher respectively on Friday.
(With inputs from Reuters)