Indian stock market soars following Trump’s victory, Sensex jumps 901 points

Nifty Bank saw a modest rise of 0.21%, closing at 52,317.40

The Indian stock market surged on Wednesday, with both the Sensex and Nifty indices gaining more than 1% following Donald Trump‘s convincing victory in the US presidential elections. Investor sentiment was lifted by expectations of reduced political uncertainty and the prospect of favorable policies under Trump’s leadership, including tax cuts and increased government spending.

The Sensex jumped 901.50 points, closing at 80,378.13, a rise of 1.13%, while the Nifty gained 270.75 points to end the day at 24,484, a 1.12% increase. The Nifty Bank saw a modest rise of 0.21%, closing at 52,317.40.

The broader market also saw a strong rally, with the Nifty Midcap 100 index climbing 2.21% to 57,355.80, and the Nifty Smallcap 100 index rising 2.18% to 18,906.10.

Buying activity was widespread, with all sectors on the National Stock Exchange (NSE) closing in the green. The IT sector saw the most significant gains, led by stocks like TCS, HCL Tech, and Infosys, which were buoyed by optimism over a potential rebound in IT spending in the US. Other sectors such as auto, PSU banks, financial services, pharma, FMCG, metals, realty, media, and energy also saw positive movements, reflecting strong investor confidence across the board. In the Sensex pack, TCS, HCL Tech, Infosys, Tech Mahindra, Adani Ports, L&T, and Maruti Suzuki were among the top gainers. On the flip side, Titan, IndusInd Bank, Hindustan Unilever, Axis Bank, and HDFC Bank were among the top losers of the day.

On the Bombay Stock Exchange (BSE), the overall market sentiment remained positive, with 3,013 stocks advancing, 961 declining, and 89 unchanged, reflecting a broad-based rally across market segments. Market analysts attributed the sharp rise in Indian stocks to a global relief rally following the US election results. Trump’s victory is seen as reducing political uncertainty, leading investors to focus on the potential for tax cuts, deregulation, and increased government spending in the US, which are expected to benefit global markets, including India.

“The market is seeing strong risk-on sentiment, with investors betting on the positive impact of Trump’s policies, especially in sectors like infrastructure, energy, and IT. The rebound in the US economy, especially in IT spending, is likely to benefit Indian tech companies,” said a senior market analyst. With the US election results now settled, investors are likely to turn their attention to domestic economic factors and corporate earnings in the coming weeks. Analysts remain optimistic about continued growth in the Indian market, supported by improving economic conditions, despite global headwinds.

The Indian market is expected to maintain its positive momentum in the near term, with market participants watching global economic developments, potential US policy changes, and corporate earnings reports for further direction.

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