Sensex zooms to 17-month high as Fed rate-hike fears ease

Mumbai, Sep 6 (PTI) Markets put up remarkable moves today,with the Sensex surging by 446 points to hit a nearly 17-monthhigh of 28,978.02, while the Nifty zoomed 133.35 points asinvestors were in a buoyant mood after a weak US jobs datadiminished hopes of an interest-rate hike by the Fed. Both the indices, Sensex and Nifty, recorded their biggestsingle-day gains in nearly two months. Bulls took over as soon as the market reopened after along gap, as weaker-than-expected US jobs data, released lastweek, reduced chances of a near-term US interest-rate hike. A three-and-a-half year high in domestic services sectorgrowth, led by new business orders amid improved marketconditions, also perked up market momentum. Auto and banking stocks were the pick of the day, withTata Motors the biggest gainer on BSE, zooming 7.19 per centto Rs 589.35, while private sector lender Axis bank followedwith a gain of 6.14 per cent to Rs 635.35. Among losers, TCS plunged by 1.17 per cent to Rs 2,484.05and Coal India slipped by 1.11 per cent to Rs 328.80. "Market is galloping due to continued global liquidity,revival in domestic MF inflows and expectation of strongearnings growth in H2FY17," said Vinod Nair, Head of Researchat Geojit BNP Paribas Financial Services. The Sensex resumed gap-up at 28,631.27 and shot-up to anhigh of 29,013.40 before closing at a nearly 17-month high of28,631.27, showing a gain of 445.91 points or 1.56 per cent.It had closed at this level at 29,044.44 on April 13, 2015. The 50-share NSE Nifty surged by 133.35 points or 1.51 percent to an 18-month high of 8,943.00, after moving. The indexhas closed at 8,996.25 on March 3, 2015. Second-line stocks also witnessed buying, lifting themid-cap index by 1.84 per cent and small-cap by 0.95 per cent. Rupee climbing to four-month highs against the dollar, asUrjit Patel begun his innings as the Reserve Bank Governor,too had a positive impact. Overseas, European stock markets rose following gains inAsian equities as prospects for a US interest-rate increasethis month remained subdued. From Asia, Nikkei rose 0.26 per cent, Shanghai Compositeedged up 0.61 per cent, Hang Seng surged 1.12 per cent whileKospi perked up 0.31 per cent. Europe was also higher with Germany’s Dax higher by 0.28per cent, France’s CAC 40 by 0.11 per cent, however, the UK’stumbled by 0.32 per cent. (MORE) RD PAKABK