The US markets closed higher on Monday, reclaiming some of the lost ground of last week, as investors took their cue from an unexpectedly strong rise in March retail sales. The US retail sales rose by a strong 1.1% in March, showing the economy is improving after the cold winter. The firm report, which shows the largest gain for sales since September 2012, adds to the perception that the US economy has taken a turn for the better. Adding to the sense of strength was a sharp upward revision to February sales. Excluding the 3.1% rise in auto sales, retail sales rose 0.7%, the fastest pace since February 2013. Auto sales increased 3.1% in March, the biggest rise since September 2012. Sales last month sped up to a 16.4 million annual rate - matching a post-recession high from 15.3 million in February. Auto dealerships account for about one-fifth of all retail spending. Separately, business inventories rose 0.4% in February to a seasonally adjusted $1.72 trillion. The ratio of inventory to sales stayed at 1.31.
The Dow Jones Industrial Average added 146.49 points or 0.91 percent, to 16,173.24, the Nasdaq Composite was up by 22.96 points or 0.57 percent, to 4,022.69, while the S&P 500 gained 14.92 points or 0.82 percent, to close at 1,830.61.
The Indian ADRs closed mostly in green on Monday; Infosys was up 2.43%, Tata Motors was up 0.90%, ICICI Bank was up 0.60% and HDFC Bank was up 0.28%. On the other hand, Dr. Reddy’s Lab was down 0.03%.