Domestic equity benchmark indices, Sensex and Nifty, rallied nearly one percent on Wednesday, led by rise in IT stocks.
Tech stocks gained amid hopes that the Donald Trump-led US government may continue with policies that would be favourable for Indian IT companies.
At 12:30 (IST), the US Presidental results showed that Donald Trump won 248 votes and Kamala Harris got 214 votes. Harris and Trump needs 270 votes to win the presidency.
IT, Banking stocks lead
The 30-share BSE Sensex gained 711.53 points or 0.9 per cent to 80,188.16. The broader Nifty rose 223.90, or 0.92 per cent, to 24, 437.2. The Nifty IT index surged 3.42 per cent in the afternoon trades.
“The sharp rebound in the market yesterday (Tuesday) indicates a halt to the downward trend witnessed during the last many days. The fact that the rebound is being led by fairly-valued and fundamentally strong large banking stocks is important and points to the possibility of the continuation of the trend,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Poor earnings a concern
However, the poor earnings growth in Q2 and earnings downgrades for FY 25 are headwinds that will constrain a sustained rally.
“The noise and action related to the US elections will last only for a few days, after which economic fundamentals will determine the direction of the market trend,” he said. Shares of Infosys rose 3.43 per cent on the NSE. TCS and HCL Tech share prices gained 3.39 per cent and 3.29 per cent, respectively at 12:22 pm on the NSE.
Investor tip
According to Vijayakumar, investors can utilise the market rallies to move from high-priced mid and smallcaps to the safety of largecaps.
Source Link: Stock Markets Today: Sensex, Nifty surge 1% each, led by gains in IT stocks | Business News - The Indian Express