(Photo : BT )

• The Indian stock market opened positively as the US presidential election count began.
• The Sensex and Nifty saw significant gains, with 1,820 stocks trading in green on the NSE.
• Market experts attribute the rebound to strong large banking stocks and anticipate the trend to continue post-US elections.
• The IT sector rallied on positive signals from the US economy, indicating a strong correlation between global events and domestic market trends.

The Indian stock market opened in green on Wednesday, as the counting for the keenly-contested US presidential election went underway. The buying was seen in sectors like realty, media, energy, private bank, and infrastructure. The Sensex was trading at 80,087.35 after rising 610 points or 0.77 per cent, while the Nifty was trading at 24,393.40 after rising 180 points or 0.74 per cent. The market trend remained positive with 1,820 stocks trading in green on the National Stock Exchange (NSE), while 449 stocks were trading in red.

The Nifty Bank was at 52,289.75 after rising 82.50 points or 0.16 per cent. The Nifty Midcap 100 index was trading at 56,589.90 after gaining 474.45 points or 0.85 per cent. The Nifty Smallcap 100 index was at 18,651.70 after gaining 148.25 points or 0.80 per cent. Top gainers in the Sensex pack included HCL Tech, ICICI Bank, Infosys, Bajaj Finserv, Bajaj Finance, Tech Mahindra, Maruti, Sun Pharma, and Axis Bank. On the other hand, Titan, Tata Steel, Hindustan Unilever Limited, Kotak Mahindra Bank, Tata Motors, and SBI were the top losers.

Market Trends and Analysis

Market experts noted that the sharp rebound in the market on Tuesday indicated a halt to the downward trend witnessed during the last many days. They pointed out that the rebound was being led by fairly-valued and fundamentally strong large banking stocks, which is important and points to the possibility of the continuation of the trend. They also noted that the noise and action related to the US elections will last only for a few days, after which economic fundamentals will determine the direction of the market trend.

In Asia, stock markets of Jakarta, Shanghai, and Tokyo were trading in the green, while markets of Seoul, Bangkok, and Hong Kong remained in the red in early trade. Meanwhile, the US stock market closed in the green on the last trading day amid the election. In India, foreign institutional investors (FIIs) sold equities worth Rs 2,569 crore on November 5, while domestic institutional investors bought equities worth Rs 3,030 crore on the same day.

Impact of US Elections on Indian IT Sector

Benchmark stock market indices opened strong on Wednesday, driven by gains in IT stocks amid close monitoring of US election results. The BSE Sensex was up 251.87 points to 79,728.50 points at 10:31 am, while the NSE Nifty rose 74,20 points to trade at 24,287.50. In early trade, the gains were seen across all 13 major sectors, with the IT index leading, gaining around 3%.

The IT sector rallied on positive signals from the US. economy, specifically the unexpected acceleration in services activity, as Indian IT firms rely heavily on the US market for revenue. Analysts from Jefferies, led by Mahesh Nandurkar, noted that potential corporate tax cuts under a Trump presidency could further support demand for Indian IT services.

Among Indian stocks, Titan fell by 3% following a drop in Q2 profits, partly due to inventory losses from the gold import tax cut. Dr. Reddy's rose 2.1% with brokerages optimistic about its growth outlook, driven by strong volume growth and a diverse product portfolio. GAIL gained around 6%, benefiting from strong natural gas marketing that helped it surpass profit expectations for Q2.