Sensex rebounds 700 points over bets on Fed rate cut

Source : IANS
Author : IANS
Last Updated: Mon, Mar 2nd, 2020, 16:12:14hrs
Sensex rebounds 700 points over bets on Fed rate cut

Mumbai: Global markets bounced back on Monday after the Federal Reserve signalled a rate cut in a rare statement it made in the backdrop of massive sell-off in global markets last week. The benchmark Sensex extended early gains and advanced 700 points on Monday.

Sentiments across global markets improved over Federal Reserve's statement that the central bank would use its tools and "act as appropriate to support the economy". This overshadowed the fresh spike in coronavirus infections in China and second coronavirus related death in the US.

At 2.35 p.m., the Sensex was up 559.68 points, to trade at 38,856.97, a gain of 1.46 per cent, while the Nifty added 190.50 points to trade at 11,362.40. Nifty IT and pharma indices gained the most during the day's trade. The pivotal banking and financial service indices were up over 1 per cent.

The global oil benchmark, Brent, jumped 4.25 per cent to $ 51.78 a barrel on Monday after it fell below the $50 a barrel mark last week.

February's India Manufacturing PMI index released on Monday showed a marginal decline at 54.5 compared to the January's 55.3.

Pollyanna de Lima, Principal Economist at IHS Markit has said that alarm bells are ringing for Indian goods producers as the COVID-19 outbreak poses threats to exports and supply chains.

"The subdued mood restricted hiring activity in February, with the latest rise in jobs the weakest in three months and only fractional overall", IHS Markit said.

Globally, China's Shanghai SE Composite Index jumped over 3 per cent, Japan's Nikkei Index gained nearly 1 per cent. Besides, futures markets also pointed at a positive start to the US and European stock markets.