Sensex up in early trade, US jobs data fuel rally

Mumbai: The Sensex surged 200 points in the opening trade as an estimate-beating US jobs data fuelled optimism for a recovery in the world's biggest economy. However, traders opted to book some profits from the market which is at a 3-month high. Metals, capital goods and banks were supporting the market.

The Sensex gained 172 points to 17,777.68 and the Nifty climbed 47 points to 5,372.95.

Better-than-expected jobs report pushed the Nasdaq to 11-year high on Friday and Dow Jones near its best level since May 2008. Unemployment rate went down to a 3-year low at 8.3 per cent while consensus expected it to be steady at 8.5 per cent. All Asian markets were trading 0.5-1.4 per cent higher.

Back home, SBI, JP Associates, Reliance Communications, SAIL, Sterlite, Hindalco, BHEL, L&T, HDFC, Axis Bank, Ambuja Cements, TCS, HUL (ahead of Q3 numbers today), IDFC and Jindal Steel gained 1-3 per cent.

However, GAIL and ONGC underperformed others.

The CNX Midcap rose 103 points to 7,427. About five shares gained for every share falling on the National Stock Exchange.

In the second lines shares, Lloyds Steel shot up 14 per cent as DNA reports that Uttam Galva promoters picked up 24 per cent stake in the company via investment of Rs 189 crore.

Results reactions: PFC jumped 5 per cent on surprised numbers on bottomline front led by unexpected forex gain. Jaiprakash Power was up 3.5 per cent. However, Everest Kanto lost nearly 2 per cent on disappointing numbers in Q3.

Piramal Healthcare jumped 7 per cent as company increased stake from 5.5 per cent to 11 per cent in Vodafone India.

GMR Infra and Lanco Infratech were up over 3 per cent. Jet Airways, Kalindee Rail, REC and Sintex were up 2.5-3.5 per cent.

Posted in: Business