Sensex zooms to 11-month high, gains 500 points

Tribune News Service

New Delhi, July 11

Enhanced hopes of the passage of the GST Bill in monsoon session of Parliament and positive jobs data in the US helped push the BSE Sensex up by 500 points to close at an 11-month high of 27,627 points. This was the biggest single-day gain in over a month for the Sensex.

Dipen Shah, senior VP & head, Private Client Group Research, Kotak Securities, said markets continued their uptrend, supported by the strong non-farm payrolls data in the US. On the domestic front, increased hopes of passage of the GST Bill in the monsoon session of Parliament, also improved sentiment.

He added that the passage of the GST Bill in Parliament will be a big trigger for the markets and may provide further upsides to the impacted sectors. “While the global scene remains challenged, improving fundamentals of the Indian economy will likely lead to sustained economic growth for India and more foreign fund flows to the Indian markets”, he added.

Global equities rallied as investors cheered a strong US jobs report while a victory for Japan’s ruling coalition in weekend elections boosted stimulus hopes.

Corporate earnings are also expected to turnaround from this quarter. Market has been rallying on the progress of the monsoon which has covered almost the whole country and growing hopes of GST Bill being passed has led to buoyancy in the markets.

After starting higher, the Sensex ended at an 11-month high of 27,626 points up 499.79 points, or 1.84 per cent — its biggest single-day gain since May 25 when it had risen 575 points.

Gold prices were also firm on local buying interest amid bullish global cues. Silver also zoomed to reclaim the key Rs 47,000-mark, due to heavy speculative offtake coupled with firm industrial demand.