Indian stock market opens in green amid US election uncertainty

Sensex, Nifty turn green as US undergoes red vs blue face

The Indian stock market opened on a positive note on Wednesday, as it tracked global cues ahead of the US presidential election outcome. With vote counting underway in the fiercely contested race, investor sentiment in India remained upbeat, fueled by buying in key sectors such as realty, media, energy, private banks, and infrastructure.

At the opening bell, the Sensex was trading at 80,087.35, up by 610 points or 0.77%. The Nifty also followed suit, rising 180 points or 0.74%, to reach 24,393.40.

The market sentiment remained strong through the morning session. On the National Stock Exchange (NSE), a wide majority of stocks were in the green, with 1,820 stocks gaining ground, compared to 449 stocks in the red.

The Nifty Bank index stood at 52,289.75, adding 82.50 points or 0.16%. The Nifty Midcap 100 index rose by 474.45 points or 0.85%, trading at 56,589.90, while the Nifty Smallcap 100 index advanced by 148.25 points or 0.80%, reaching 18,651.70.

Key stocks driving the rally included HCL Tech, ICICI Bank, Infosys, Bajaj Finserv, Tech Mahindra, Maruti, Sun Pharma, and Axis Bank, all among the top gainers in the Sensex pack. On the flip side, Titan, Tata Steel, Hindustan Unilever Limited, Kotak Mahindra Bank, Tata Motors, and SBI were the major laggards.

Market experts pointed out that the positive momentum followed a strong rebound in the previous session, which signaled a potential end to the bearish phase witnessed in recent weeks. They highlighted that the recovery was largely driven by large banking stocks, which are seen as fundamentally strong and fairly valued at current levels.

“While the noise surrounding the US election outcome is likely to dominate the headlines for the next few days, we believe that the market’s medium-term direction will be shaped by the economic fundamentals,” said a senior analyst at a leading brokerage firm. “The rebound, particularly in financials, suggests a solid base for further gains.”

Asian markets exhibited a mixed trend on Wednesday. While the stock markets of Jakarta, Shanghai, and Tokyo were trading in the green, indices in Seoul, Bangkok, and Hong Kong were in the red during early trade. US markets had closed in positive territory in the last session, also reacting to the ongoing election drama, with investors looking past the uncertainty.

On the domestic front, foreign institutional investors (FIIs) were net sellers of Indian equities on November 5, offloading stocks worth Rs 2,569 crore. However, domestic institutional investors (DIIs) were active buyers, purchasing equities worth Rs.3,030 crore on the same day, which helped support the market rally.

As market participants await further developments in the US election, the next few days are expected to bring heightened volatility, but analysts remain optimistic about India’s long-term growth story, driven by strong corporate earnings and improving domestic economic conditions.

While the US election outcome continues to be a focal point for global markets, Indian investors are advised to stay focused on the broader economic fundamentals. The continued strength of the banking sector, alongside signs of recovery in other key sectors, has analysts cautiously optimistic about the near-term outlook for the Indian stock market.

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