Sensex jumps over 1 percent on earnings growth, U.S. jobs report

REUTERS - Indian shares jumped more than 1 percent on Monday and were headed for their best gain in more than two weeks, as a recent string of positive corporate results raised tentative hopes about an improving domestic economy.

Sentiment was also boosted after a weaker-than-expected U.S. jobs report on Friday left some economists anticipating only one interest rate hike from the Federal Reserve this year.

Meanwhile, oil prices jumped on Monday as a huge wildfire in Canada's oil sand region knocked out over a million barrels in daily production capacity, contributing to a significant tightening of markets over the past weeks.

 

The developments led to a rebound in shares after indexes had fallen more than 2 percent over the previous two weeks.

"We have recovered from the lows and have been able to sustain higher levels as we are seeing buying coming in at lower levels. Also, earnings season so far has been fairly positive," said Gaurang Shah, vice president at Geojit BNP Paribas, adding he sees any downside in local shares as a buying opportunity.

The broader NSE Nifty rose 1.32 percent to 7,835.25 as of 0648 GMT, while the benchmark BSE Sensex was 1.31 percent higher at 25,562.78.

Mortgage lender Housing Development Finance Corp continued its winning streak for a fifth straight session following an upbeat 40 percent surge in March-quarter net profit last week. The stock was up 2.6 percent on Monday.

Among other bright spots, Yes Bank rose 3.2 percent while HDFC Bank gained 1.8 percent after both lenders posted a jump in March-quarter earnings last month.

Oil explorers rallied with Oil and Natural Gas Corp and Reliance Industries gaining 1.4 percent and 1.6 percent respectively following strong gains in crude oil prices.

ITC rose as much as 2 percent after the company on Sunday said its cigarette factories are re-starting production in a phased manner.

Among the laggards, Titan Company Ltd fell as much as 3 percent after the watches and jewellery maker posted a 14.4 percent fall in March-quarter net profit.

(Reporting by Aastha Agnihotri in Bengaluru; Editing by Sunil Nair)