Indices open firm on positive trend in global markets

Gladys Abbott
March 13, 2018

The Dow Jones Industrial Average rose 440.53 points, or 1.77 per cent, to end at 25,335.74, the S&P 500 gained 1.74 per cent and the Nasdaq Composite added 132.86 points, or 1.79 per cent, to 7,560.81. Despite an increase in USA hiring last month, wage growth was muted as people rejoined the labor force and so expanded the pool of workers and job seekers - perhaps granting the Federal Reserve a reprieve on having to step in with the cooling measure of higher interest rates. This is the biggest single-day gain since March 2016.

The gainers were ITC by 2.66 pc to Rs 266.30, Wipro by 2.09 pc to Rs 291.15, Infosys by 2.07 pc to Rs 1187.45 and Bharti Airtl by 1.60 pc to Rs 408.40.

Asian stocks from Tokyo to Sydney gained as trade war concerns took a backseat to economic optimism following a USA jobs report on Friday that showed that the American economy continued to strengthen without the prior month's rapid wage gains that stoked inflation fears.

Non-farm payroll data released in the U.S. last Friday showed a strong growth of 313,000 jobs.

The benchmark indices have lost ground in seven of the last nine trading sessions.

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FMCG, IT, Teck, oil & gas, metal, capital goods, bankex and auto counters saw heavy buying activity ahead of key IIP and inflation numbers, to be released after market hours today.

Firm trend in other Asian markets and higher opening in European bourses, following a good show by Wall Street on Friday, lifted investors' mood in domestic markets.

Gaining over 350 points during the day, the Sensex was at 33,630.39 points, up 323.25 or 0.97% at 11am.

Market participants will keep a close eye on domestic macro-economic data releases.

Trading was brisk across global markets. While Rs 13,781 crore was invested in January 2018, Rs 11,037 crore was pulled out in February.

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