• The Indian stock market opened flat, with a surge in auto and IT sectors, and all Adani Portfolio shares trading in green.
• The market is closely monitoring US President-elect Donald Trump's tariff announcements on imports from Mexico, Canada, and China.
• This situation echoes the 2016 US election when Trump's victory led to a surge in the US stock market due to his pro-business stance.
• The impact of these tariffs on the global economy and the reactions of the affected countries are yet to be seen, with potential significant implications for the Indian stock market.

The Indian stock market commenced trading on a flat note on Wednesday, with a surge in buying observed in the auto and IT sectors. Notably, all shares of the Adani Portfolio of companies were trading in the green during the morning trade. Adani Green shares saw a jump of Rs 7.25 or 0.81 per cent, trading at Rs 905.80. Adani Enterprises Ltd's stock also saw an increase, up 3.4 per cent at Rs 2,224.85 apiece.

At around 10:02 am, the Sensex was trading at 80,006.8 after a marginal rise of 2.83 points or 0 per cent, while the Nifty was trading at 24,195.80 after a slight increase of 1.30 points or 0.01 per cent. The market trend remained positive with 1,637 stocks trading in green on the National Stock Exchange (NSE), while 669 stocks were in the red.

However, the Nifty Bank was down 57.25 points or 0.11 per cent at 52,134.25. The Nifty Midcap 100 index was trading at 55,992.60 after gaining 78.20 points or 0.14 per cent. The Nifty Smallcap 100 index was at 18,406.85 after gaining 141.55 points or 0.78 per cent.

Trump's Tariff Announcements and Market Reactions

Market experts have been closely monitoring the actions of US President-elect Donald Trump, who has already started declaring his intentions for his term. Trump has announced around 25 per cent tariffs on Mexican and Canadian imports and an additional 10 per cent tariffs on Chinese imports. The reactions of these countries to these tariffs are yet to be seen.

In the Sensex pack, NTPC, Kotak Mahindra Bank, M&M, Bajaj Finance, HCL Tech and Tech Mahindra were the top gainers. On the other hand, IndusInd Bank, Tata Steel and Bharti Airtel were the top losers. In the Asian markets, Hong Kong and Shanghai were trading in green, while Jakarta, Bangkok and Seoul were trading in red. The US stock markets closed in green on the previous trading day.

Foreign institutional investors (FIIs) bought equities worth Rs 1,157 crore on November 26, while domestic institutional investors sold equities worth Rs 1,910 crore on the same day.

Historical Similarities and Future Implications

This event is reminiscent of the 2016 US presidential election when Donald Trump's victory led to a surge in the US stock market. The Dow Jones Industrial Average rose by more than 250 points the day after the election, marking the biggest post-election day rally since 1980. The S&P 500 and the Nasdaq also saw significant gains. This was largely due to Trump's pro-business stance and promises of tax cuts and deregulation.

However, Trump's recent announcement of tariffs on imports from Mexico, Canada, and China could potentially disrupt global trade and have significant implications for the Indian stock market. The impact of these tariffs on the global economy and the reactions of the affected countries remain to be seen.