Markets bounced back on Thursday on the back of strong Chinese data and US Fed minutes buoying hopes of accelerating economic growth. The BSE Sensex rose 245.11 points, or 0.92%, closing at 26,878 while Nifty gained 83.30, or 1.02%, to end at 8,273.80.
World stocks shot up the most since mid 2015 owing to Chinese services sector’s climb to a 17-month high in December, along with US Fed minutes hinting less aggressive policy tightening that contributed to the optimism about global growth and inflation.
Barring IT and technology, all sectoral indices ended in the green. Adani Ports packed in maximum gains rising 4.88%, along with Tata Steel that climbed up 3.47%, on the back of robust buying activity. Additionally, Tata Motors gained 3.18%, ONGC 2.73%, Power Grid 2.50%, ICICI Bank 2.41% and Maruti Suzuki 2.28%.
Value-buying in blue-chips along with mixed global markets trend due to overnight gains in US, boosted sentiment.
The MSCI world equity index, which tracks shares in 46 countries, was up 0.4% at one stage to hit its highest level since July 2015. At that level it was up over 1.5% for the year so far.
The index was pushed up by Asian shares, which rose for the eighth consecutive day on Thursday. European shares held steady near recent highs.
“While I am always cautious about December data because of seasonal factors, we certainly have seen across the board positive PMI data in Japan, China and the UK as well this morning,” said Investec economist Victoria Clarke.
Britain’s economy finished 2016 strongly, growing at the fastest rate since mid-2015, an industry survey showed on Thursday.
Stocks and bond yields have been rising ever since the election of Republican Donald Trump as US president on expectations fiscal stimulus will boost growth and inflation. Trump’s inauguration takes place on January 20. “A continuation of Trump momentum promises to be the prevailing mood until we get into the detail of what Trump will actually do and the battles he may have with Congress,” said Investec’s Clarke.
With inputs from Reuters
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The MSCI world equity index, which tracks shares in 46 countries, was up 0.4% at one stage to hit its highest level since July 2015. At that level it was up over 1.5% for the year so far.
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