US elections: Sensex and Nifty rise as IT stocks rise after Donald Trump announces victory

Benchmark stock market indices ended Wednesday’s trading session on a strong note as information technology (IT) stocks rose after Donald Trump declared victory in the US elections.

The S&P BSE Sensex gained 900.50 points to settle at 80,378.13, while the Nifty50 index advanced 270.75 points to 24,484.05. Earlier in the session, the Sensex rose over 1,000 points.

All other broader market indices also rose sharply during the trading session as volatility eased as the trading session progressed.

IT stocks were the biggest contributors to today’s market rally, as evidenced by the 4% rise in the Nifty IT index. Oil and gas and real estate stocks also rose more than 2% on the session.

The top five on Nifty50 are BEL, Adani Enterprises, TCS, Wipro and HCLTech.

On the other hand, the top losers were SBI Life, Titan, HDFC Life, IndusInd Bank and Trent.

Vinod Nair, Head of Research, Geojit Financial Services: “After the US election results, global markets were relieved, reducing political uncertainty with Trump getting a strong mandate.”

“This has led to strong risk sentiment driven by expectations of tax cuts and increased government spending. Domestic purchasing was broad, with IT industries leading the way in anticipation of a recovery in US IT spending. BFSI spend in the US has improved as per Q2 IT results, which is a positive development for Indian players,” he added.

Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd, said, “The market continued its recovery, gaining over 1% on the back of positive global developments. “Preliminary polls indicated that Trump could potentially return to the US presidency.”

“All sectors contributed to the recovery, with IT, real estate and energy leading the growth. The broader indices also reflected this dynamic, each rising more than 2%,” he said.

“The Nifty index has retested resistance at 24,500 after two days of recovery and sustaining this level could lead to further gains towards 24,800. While all sectors are showing strength, we expect banking and IT to be the major growth drivers for the market. Traders should consider aligning their positions accordingly by focusing on major indices and large midcap counters for long trades,” Mishra said.