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Benchmark equity indices BSE Sensex and Nifty 50 gained at opening bell on Wednesday
Stock Market Updates
The benchmark equity indices, BSE Sensex and NSE Nifty50, ended higher by over 1 per cent each, settling in green for the second consecutive session after former US President Donald Trump announced his victory.
The BSE Sensex ended higher by 901.50 points or 1.13 per cent at 80,378.13. Similarly, NSE Nifty50 settled at 24,484.05, up 270.74 points or 1.12 per cent.
As many as 41 out of 50 constituent stocks of Nifty50 ended higher, led by Bharat Electronics, Adani Enterprises, Tata Consultancy Services, HCL Tech, and Wipro, with gains extending up to 5.33 per cent. Conversely, SBI Life, Titan, HDFC Life, IndusInd Bank, and Trent were among the 9 constituent stocks that ended lower.
Across sectors, the Metal index was down 1 per cent, followed by the Consumer Durables indces, which was down 0.18 per cent. All the rest of the sectoral indices were trading higher, with the Realty index gaining the most, climbing 1.45 per cent.
This was followed by the OMC, Healthcare, IT, Financial Services and Bank indices.
In the broader markets, meanwhile, the Nifty Midcap 100 was higher by 0.58 per cent, followed by the Nifty Smallcap 100, which was 0.54 per cent higher.
A Donald Trump administration is likely to bring renewed trade tensions, with potential adverse effects on India’s key export sectors and capital inflows. The economic outlook for India will depend significantly on the global trade environment and how quickly the US economy adjusts to the policy changes that are likely to follow a Trump victory. Trade tariffs he will definitely bring into China could be beneficial for India because Indian sectors will benefit like manufacturing. But tariffs on India will affect some sectors. In the US, product cost will increase and inflation will go up. Potentially there could be impact but we have to wait to see what happens, said Nitin Aggarwal, Director of Investment Research and Advisory at Client Associates.
Global Cues
Asia-Pacific markets were mostly higher on Wednesday after Wall Street surged overnight ahead of the US presidential election results.
Japan’s Nikkei 225 was trading up 1.3 per cent, while the Topix gained 1.1 per cent.
The Bank of Japan released September monetary policy meeting minutes, showing general agreement that the central bank should keep raising rates when certain economic and price targets are met.
South Korea’s Kospi was up 0.2 per cent, while the Kosdaq gained 0.55 per cent.
Hong Kong’s Hang Seng index fell 1.3 per cent, while mainland China’s CSI 300 was down 0.33 per cent. The Shanghai Composite was up 0.36 per cent.
A five-day meeting of China’s National People’s Congress (NPC) will continue on Tuesday, with investors watching for information on additional stimulus and polices aimed at stabilising the economy.
Australia’s S&P/ASX 200 rose 0.8 per cent.
US stock futures and the dollar also pushed higher in Asia on Wednesday as early results from the US presidential election suggested the race remained too close to call, leaving investors jumping at shadows.
As expected, Republican Donald Trump won Indiana and Kentucky while Democrat Kamala Harris captured Vermont, Edison Research projected, as polls closed in the first six US states.
Treasury yields climbed as some betting sites swung to favour Trump, while futures markets were still confident the Federal Reserve will cut interest rates by 25 basis points on Thursday.
Analysts generally assume Trump’s plans for restricted immigration, tax cuts and sweeping tariffs if enacted would put more upward pressure on inflation and bond yields, than Harris’ centre-left policies.
Yields on 10-year Treasury notes rose to 4.34 per cent, from 4.28 per cent, and nearer a four-month high of 4.388 per cent touched last week. Two-year yields climbed to 4.245 per cent, from 4.189 per cent late in New York.
S&P 500 futures were up 0.5 per cent in choppy trading, while Nasdaq futures added 0.2 per cent. EUROSTOXX 50 futures firmed 0.2 per cent, while DAX futures tacked on 0.4 per cent.
