• The Indian stock market saw gains following Trump's US election victory, with Sensex and Nifty both rising over 1%.
• The market trend remained positive, with IT leading the charge due to anticipated US spending rebound.
• Ajay Garg, CEO of SMC Global Securities, predicts opportunities and challenges for India in trade, defense, immigration, and technology.
• The positive response reflects global relief and reduced political uncertainty, with potential long-term impacts on the Indian economy.

The Indian stock market has responded positively to Donald Trump's decisive victory in the US presidential elections. The benchmark indices, Sensex and Nifty, both saw gains of more than 1 per cent, driven by heavy buying in the IT sector.

The Sensex closed at 80,378.13, up by 901.50 points or 1.13 per cent. Similarly, Nifty closed at 24,484 after gaining 270.75 points or 1.12 per cent.

The Nifty Bank rose 110.15 points or 0.21 per cent to 52,317.40. The Nifty Midcap 100 index closed at 57,355.80 at the end of trading after gaining 1240.35 points or 2.21 per cent. Nifty Smallcap 100 index closed at 18,906.10 after gaining 402.65 points or 2.18 per cent.

The market saw buying in Nifty's auto, IT, PSU bank, financial service, pharma, FMCG, metal, realty, media, and energy sectors. All sectors closed with trading in green. TCS, HCL Tech, Infosys, Tech Mahindra, Adani Ports, L&T, and Maruti were the top gainers in the Sensex pack. Titan, IndusInd Bank, Hindustan Unilever, Axis Bank, and HDFC Bank were the top losers.

Market Trends and Expert Opinions

The market trend remained positive. On the Bombay Stock Exchange (BSE), 3,013 stocks were trading in the green, 961 in the red, and there was no change in 89 shares. Market experts have attributed this positive trend to the global markets experiencing 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 a rebound in IT spending in the US.

This development is reminiscent of the 2016 US elections when the Indian stock market also rallied following Trump's victory. The anticipation of tax cuts and increased government spending under Trump's administration had then led to a surge in the stock market.

Ajay Garg, Director and CEO of SMC Global Securities Limited, provided a comprehensive outlook. He said, "Trump's second time after a gap of four years as US President is expected to bring both opportunities and challenges for India across trade, defense, immigration, and technology." Garg highlighted that while protectionist trade policies could impact Indian exports, Trump's strategy to reduce US dependence on China may create new opportunities for Indian manufacturers and tech firms as alternative suppliers.

Global Impact and Future Predictions

The early election trends showed Republican candidate Donald Trump leading in the US Presidential Polls 2024. The former US President is leading in 266 electoral votes and has gained dominance in more than 27 states. The BSE Midcap and Smallcap indices rose 2.28 per cent and 1.96 per cent, respectively. Over 200 stocks, including Coforge, City Union Bank, Deepak Fertilisers, eClerx Services, Gillette India, Mankind Pharma and National Aluminium Company, hit their fresh 52-week highs in intraday trade on BSE.

Sectoral indices today All sectoral indices rose in trade, led by the Nifty IT index, which surged 4 per cent, followed by Nifty Realty and Oil and Gas, which jumped almost 3 per cent. Consumer Durables rose 2 per cent while Auto, Media, Metal, Pharma and PSU Bank rose over a per cent each. The domestic buying was broad-based, with IT leading the charge in anticipation of a 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, said Nair.

The European shares opened higher today, following gains in the US stock futures after early election results indicated Trump's clear victory and Republicans secured control of at least one Congressional chamber.