Indian Stocks Rally Over Trump's Win; Sensex Jumps 901 Points

Domestic stock markets on Wednesday positively reacted to the projected victory of Republican candidate and former US president Donald Trump in the US presidential elections.

The Nifty closed in green territory at 24,484.05, up 270.75 points or 1.12 per cent and the BSE Sensex at 80,378.13, up 901.50 points or 1.13 per cent.

During the trading, the BSE Sensex upped over 1000 points at a point while Nifty reclaimed a level of 24,500.

On the National Stock Exchange (NSE), Bharat Electronics Limited, Adani Enterprises, TCS, Wipro, and Infosys were the top gainers. Among the top losers during the trading were SBI Life Insurance, Titan, HDFC Life, IndusInd Bank, and Trent Limited.

All the sectoral indices on the NSE traded in the green territory. Broader indices also posted strong gains, with Nifty Midcap 100 and Nifty Smallcap 100 rising over two per cent each. All sectoral indices ended higher, led by Nifty IT, which surged 3.99 per cent, followed by Consumer Durables, and Realty indices, which gained more than two per cent.

The markets, around the globe except some Asian markets, are positively reacting to the victory of Trump, as S&P 500 futures hit a record high in a broad rally.

The European shares opened higher today, following gains in the US stock futures after early election results indicated Trump's clear victory and Republicans secured control of at least one Congressional chamber.

In Asia, Japan's Nikkei 225 gained 2.61 per cent, while China's main indices showed mixed performance, with Hong Kong's Hang Seng falling 2.23 per cent. Historically, Trump's victory has been seen as negative for Chinese markets due to his anti-China stance.

"Given his "America First" approach to trade policy, a Trump victory might have a big effect on the Indian market. Increased tariffs and protectionism could result from this, which could hurt India's exports to the US. Furthermore, a Trump government may be less enthusiastic about the commercial connection between the US and India, which might have an impact on collaboration and investment in fields like technology and defense," said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.

"However, a Trump victory might also result in more energy cooperation, especially given India's expanding energy requirements. The details of Trump's policy and India's response will determine the overall effect," he said.

The IT stocks in the Indian markets rose after the data revealed an unexpected acceleration in US services sector activity in October.
"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," said Vinod Nair, Head of Research, Geojit Financial Services.

Observing the market, Varun Aggarwal MD, Profit Idea said that Trump's victory in the US has sparked a relief rally in global markets, reducing political uncertainty and stoking risk-on sentiment, particularly in anticipation of tax cuts and increased government spending.
"However, his protectionist trade policies, including higher tariffs, may pose challenges for sectors such as pharmaceuticals and IT in India, with potential tariff hikes on exports to the US," Aggarwal added. (ANI)