India’s benchmark indices surged on Wednesday, buoyed by the projected victory of former U.S. President Donald Trump in the 2024 U.S. presidential election, which sparked a wave of optimism among global investors.
The BSE Sensex climbed 901.50 points to close at 80,378.13, while the Nifty 50 gained 270.75 points, ending at 24,484.05. During intraday trading, the Sensex briefly rallied by over 1,000 points, and the Nifty touched 24,500 before both indices pared some gains.
Top gainers on the National Stock Exchange (NSE) included Bharat Electronics Limited, Adani Enterprises, TCS, Wipro, and Infosys. On the downside, SBI Life Insurance, Titan, HDFC Life, IndusInd Bank, and Trent Limited recorded steep losses.
All sectoral indices on the NSE advanced, with the Nifty IT index leading the charge, surging nearly 4%. Consumer Durables and Realty sectors also posted strong gains, rising more than 2%.
Trump’s projected victory sent a ripple of optimism through global markets. S&P 500 futures hit record highs, while European shares opened stronger, mirroring the positive sentiment in the U.S. Meanwhile, Asian markets reacted mixedly, with Japan’s Nikkei 225 up 2.61% and Hong Kong’s Hang Seng falling by 2.23%.
Trump’s “America First” policies, which could lead to increased tariffs and protectionist measures, may impact India’s export-driven sectors like IT and pharmaceuticals.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd., said that these policies could strain U.S.-India trade relations, particularly in areas like technology and defense, though they may open doors for greater energy cooperation.
Vinod Nair, Head of Research at Geojit Financial Services, attributed Wednesday’s boost in IT stocks to expectations of increased U.S. spending amid reduced political uncertainty, a factor that supports growth in India’s IT sector.
Varun Aggarwal, MD of Profit Idea, highlighted that Trump’s win has prompted a global relief rally, encouraging “risk-on” sentiment driven by expectations of tax cuts and higher government spending. However, he cautioned that Trump’s protectionist trade policies, including potential tariff hikes, could challenge key sectors like IT and pharmaceuticals that rely on U.S. exports.
(With ANI input)