Benchmark stock market indices surged over 1% on Wednesday bolstered by the potential victory of Donald Trump in the U.S. Presidential election. The buying momentum was led by IT stocks. The BSE IT index surged 4.04% amidst heavy buying.
The S&P BSE Sensex surged 901.50, points or 1.13%, to 80,378.13 points. Top Sensex gainers included TCS (4.21%), Infosys (4.02%), Tech Mahindra (3.85%), HDLTech (3.71%), Adani Ports (3.21%) and L&T (1.99%).
The NSE Nifty-50 index too gained 270.75 points, or 1.12%, to 24,484.05.
“The market surpassed all significant levels, driven by positive sentiment across various asset classes worldwide. The potential verdict for Mr. Trump boosted US stock futures, leading to short covering in other markets,” Shrikant Chouhan, Head Equity Research, Kotak Securities said.
The Nifty and Sensex indices managed to cross 24400/80000 levels, which propelled the market towards 24500/80300, he added.
Vinod Nair, Head of Research, Geojit Financial Services said, “The global markets experienced a relief rally following the US election results, reducing political uncertainty with Trump securing a strong mandate.”
“This has led to strong risk-on sentiments, driven by expectations of tax cuts and increased government spending. The domestic buying was broad-based, with IT leading the charge in anticipation of rebound in IT spending in the US. BFSI spending in the US has improved as per the IT Q2 result which is positive for Indian players,” he added.
Nandish Shah, Senior Derivative & Technical Research Analyst, HDFC Securities said NSE cash market volumes were higher by 15% as compared to Tuesday and Dow futures jumped more than 1,000 points as Mr. Trump neared election victory.
All the sectoral Indices closed in the green. Amongst them, Nifty IT, Reality and OIL/Gas gained the most, he said.
Nifty Midcap 100 Index surged 2.21% to close at highest levels since 21-October while Nifty Smallcap 100 Index rose 2.18% to close at highest levels since 18-October.
Advancing shares outnumbered the declining shares as advance decline ratio stood at 3.11 levels on BSE, highest since October 8 .
Published - November 06, 2024 07:47 pm IST
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