Government data showed that industrial activity rose 7.5% in January.
The BSE benchmark Sensex today posted its biggest intra-day gain in almost two years by surging over 600 points to close at 33,917.94. The BSE mid-cap index ended higher by 0.76 per cent and small-cap index 0.56 per cent. Among sectoral indices, the BSE metal index rose the most by 2.32 per cent. Both the indices have underperformed the Sensex in percentage terms.
A relief rally swept across Asian share markets on Monday after the latest U.S. jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally.
Non-farm payrolls data in the United States, which was released on Friday, showed that the economy had added 3,13,000 jobs in the past month, Reuters reported.
The benchmark index of Bombay Stock Exchange (BSE) on Monday spurted by 294.57 points to 33,602.71 on capital inflows by foreign funds ahead of key IIP to be released today. Barring Coal India, all stocks in the Sensex pack gained ground with ICICI Bank, Tata Motors, Bharti Airtel, NTPC, ITC and Axis Bank all gaining between 2-4% each.
The market breadth, indicating the overall health of the market, was positive. A total of 186 shares were unchanged.
Karthikraj Lakshmanan, Senior Fund Manager-Equities, BNP Paribas Mutual Fund, said steady buying demand in index pivotals gave a fillip to the wider market.
Some global markets on Monday rose at least one per cent following similar gains in the USA on Friday, including a record close for the Nasdaq Composite at 1.79 per cent that followed a strong U.S.jobs report.
At home, the GST council sent out a positive signal to the export community by deciding to extend the available tax exemptions on imported goods for a further six months beyond 31 March 2018, he said. Meanwhile, the annual rate of growth in average hourly employee earnings slowed, easing worries about faster interest rate hikes by the Federal Reserve.