Sensex, shrewd rally as inflation worries

(RTTNews) – Indian stocks rose significantly on Monday as strong US jobs data helped ease recession fears and oil started the week on a gloomy note in reaction to the mixed data on Chinese trade.

Also helping to support investor sentiment, the latest RBI household survey showed that their median perception of inflation moderated by 80 basis points to 9.3% in July.

Earlier in the day, customs data showed Chinese exports rose 18% in July, sending the trade surplus to a record high and alleviating concerns about falling global demand.

However, imports remained sluggish with a 2.3% year-on-year increase.

The benchmark S&P BSE Sensex index jumped 465.14 points, or 0.80%, to 58,853.07, while the broader NSE Nifty index closed up 127.60 points, or 0, 73%, at 17,525.10.

Mahindra & Mahindra rose 3.2% after reporting a 67% increase in first-quarter standalone net profit.

Hindalco, NTPC, Bajaj FinServ and Coal India all rose around 3%. Digital payments company Paytm jumped 6.5% after its parent company One97 Communications reported an 89% increase in quarterly revenue, helped by higher monthly user numbers, additional payment devices and a increase in loan disbursements.

On the other hand, state-run oil marketing company BPLC lost 3% after posting Rs. 6,148 crores in the first quarter ended June.

The SBI fell 2.1% after the nation’s largest public lender reported a 6.7% drop in first-quarter net profit, widely missing Street’s estimates due to a huge impact on value market of the bank’s government bond investments.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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