Sensex Rises 473 Points, Nifty 0.60% as Fed Tightening Concerns Ease

Benchmark equity indices Sensex and Nifty rebounded on Monday, tracking gains in Asian markets as softer-than-expected US jobs data eased concerns over aggressive monetary tightening by the Federal Reserve, while moderating crude oil prices provided further support to investor sentiment.

The 30-share BSE Sensex opened higher and gained 413 points to 72,315 in early trade. It later surged 722.23 points, or 1 per cent, to 72,631.93. The index finally settled at 72,382.47, up 472.77 points, or 0.66 per cent.

The 50-share NSE Nifty also opened on a firm note, rising 131.55 points to 22,554.20. It climbed as much as 187.30 points to 22,605.10 before ending at 22,555.75, up 133.80 points, or 0.60 per cent.

The recovery came after US employment data showed employers added only 29,000 jobs last month, below economists' expectations and significantly lower than August's 133,000 net hiring. The data reduced expectations of another aggressive rate hike by the US Federal Reserve and supported risk appetite across emerging markets.

Asian equities also advanced, with Japan's Nikkei 225 jumping 2.5 per cent in morning trade and briefly crossing the 70,000 mark for the first time in three months. The Hang Seng was largely unchanged, while markets in Shanghai and South Korea were closed for holidays.

Crude oil prices also remained a key factor. Brent crude was around USD 102.40 a barrel at the close, easing from recent highs and providing some relief on the inflation front. "Markets witnessed a strong recovery on Monday, taking a breather from the recent corrective trend," said Ajit Mishra, SVP-Research, Religare Broking.

Among Sensex constituents, ITC, Eternal, Bharti Airtel, Bajaj Finance, Adani Ports, ICICI Bank, Reliance Industries and Larsen & Toubro were among the major gainers, while HCL Tech, HDFC Bank, Sun Pharma, Infosys and Asian Paints ended lower. Investors are now turning their attention to the RBI's policy decision and the upcoming corporate earnings season, analysts said.

Foreign Institutional Investors sold equities worth Rs 9,484.22 crore in the previous trading session. On Thursday, the Sensex had declined 570.59 points and the Nifty fell 198.50 points. Markets were closed on Friday for Gandhi Jayanti.