Sensex, Nifty surge over 1% on heavy buying in IT stocks as Donald Trump wins U.S. polls

A vendor walks past by a poster of bear and bull in south Mumbai. File

Stock markets rallied more than 1% on Wednesday (November 6, 2024) with benchmark Sensex soaring 901 points on heavy buying in IT and pharma shares as Donald Trump wins the U.S. presidential elections.

Extending its gains to the second day, the BSE Sensex jumped 901.50 points or 1.13% to settle at 80,378.13. During the day, it soared 1,093.1 points or 1.37% to 80,569.73.

The NSE Nifty soared 270.75 points or 1.12% to close at 24,484.05.

From the 30-share Sensex pack, Tata Consultancy Services and Infosys jumped over 4% each. HCL Technologies, Tech Mahindra, Adani Ports, Larsen & Toubro, Maruti and Reliance Industries were also among big gainers.

Titan, IndusInd Bank, Hindustan Unilever, Axis Bank and HDFC Bank were the laggards.

“Global markets experienced a relief rally following the U.S. 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,” Vinod Nair, head of research at Geojit Financial Services said.

The domestic buying was broad-based, with IT leading the charge in anticipation of a rebound in IT spending in the U.S.

“BFSI spending in the U.S. has improved as per the IT Q2 result which is positive for Indian players,” Mr. Nair added.

In Asian markets, Tokyo settled higher while Seoul, Shanghai and Hong Kong ended lower.

European markets were quoting in the green. Wall Street ended sharply higher on Tuesday (Nov. 5).

Global oil benchmark Brent crude declined 2% to $74.02 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,569.41 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought ₹3,030.96 crore worth of shares, according to exchange data.

Bouncing back from Monday’s (Nov. 4’s) sharp fall, the BSE benchmark jumped 694.39 points or 0.88% to settle at 79,476.63 on Tuesday (Nov. 5). The Nifty climbed 217.95 points or 0.91% to 24,213.30.