US elections: Sensex, Nifty surge as IT stocks rally after Donald Trump claims victory

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

In Short

• Sensex surges 900 points as Trump’s win fuels optimism
• IT stocks lead rally, Nifty IT index rises 4%
• BEL, Adani, TCS, Wipro among top Nifty50 gainers today

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

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

All the other broader market indices also gained sharply during the session as volatility reduced as the trading session progressed.

IT stocks were the biggest contributors to today’s market rally, reflected by the 4% gain in the Nifty IT index. Oil & Gas and Realty stocks also rose over 2% during the session.

The top five gainers on the Nifty50 were 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, “The global markets experienced a relief rally following the US election results, reducing political uncertainty with Trump securing a strong mandate.”

“This has led to strong risk-on sentiments, driven by expectations of tax cuts and increased government spending. The domestic buying was broad-based, with IT leading the charge in anticipation of rebound in IT spending in the US. BFSI spending in the US has improved as per the IT Q2 result which is positive for Indian players,” he added.

Ajit Mishra – SVP, Research, Religare Broking Ltd, said, "The market extended its rebound, gaining over 1% amid positive global cues. Following a flat opening, the Nifty gradually climbed, largely driven by the upbeat performance in the US markets as early polling results pointed towards Trump potentially returning as US President."

"All sectors contributed to the recovery, with IT, real estate, and energy emerging as the top gainers. Broader indices also mirrored this momentum, each advancing by over 2%," he noted.

"The Nifty has retested resistance at the 24,500 mark after two days of recovery, and sustaining this level could lead to a further rise toward 24,800. While all sectors are showing strength, we expect banking and IT to be the primary drivers of the market going forward. Traders should consider aligning their positions accordingly, focusing on index majors and large midcap counters for long trades," Mishra noted.