MUMBAI: The equity markets soared nearly two per cent on Monday tracking strong gains in overseas equities after US jobs data showed that the annual growth in average hourly earnings slowed to 2.6 per cent despite an impressive growth in non-farm payrolls.
While the strong growth in US jobs data indicated strong recovery in US economy, the moderation in average hourly wage gains eased concern regarding higher inflation and aggressive hike in interest rate by the US Federal Reserve in 2018.
Posting its biggest single day gain in last one year, the Sensex vaulted 610.80 points or 1.83 per cent to end the day at 33,917.94 while the Nifty soared 194.55 points or 1.90 per cent to end the session at 10,421.40.
“After 10 per cent correction from the all-time high levels surrounded by whole host of negatives, Indian markets had phenomenal day with frontline indices rallying nearly two per cent offering much needed cheer and relief to the investors. Albeit Monday’s rally was on the back of heavy short-covering from large caps, still the market will take it with both hands,” said Jagganadham Thunuguntla, senior vice-president and head of research (wealth) at Centum Broking.
