Mumbai. Local stock markets rose by more than one percent on Wednesday due to heavy buying in information technology (IT) and pharma stocks amid Donald Trump’s victory in the US presidential elections. During this, the major stock index Sensex closed 901 points higher.
BSE Sensex continued its gains for the second day and closed at 80,378.13, up 901.50 points or 1.13 percent. The index rose 1,093.1 points, or 1.37 percent, to 80,569.73 in intraday trading. National Stock Exchange’s Nifty closed at 24,484.05 points, up 270.75 points or 1.12 percent. Among Sensex stocks, HCL Technologies, Tech Mahindra, Adani Ports, Larsen & Toubro, Maruti and Reliance Industries witnessed significant gains. On the other hand, shares of Titan, IndusInd Bank, Hindustan Unilever, Axis Bank and HDFC Bank declined.
Vinod Nair, head of research, Geojit Financial Services, said, “After the US election results, a relief rally was seen in the global markets. Political uncertainty has reduced with Trump’s strong mandate. “This has increased the possibility of tax cuts and increase in government spending.” He said there were gains in shares of domestic information technology companies due to expectations of increase in IT spending in America.
Nair said, “According to the second quarter results of IT companies, spending in the banking and financial services sector in America has increased. This is positive for Indian companies.” BSE Midcap index gained 2.28 percent and Smallcap index gained 1.96 percent. Talking sector wise, there was a rise of 4.04 percent in BSE IT, 2.68 percent in Realty, 2.66 percent in Industrial, 2.53 percent in Services and 2.44 percent in Utilities. A total of 3,000 shares gained on BSE, while 968 shares closed in loss.
In other markets of Asia, Japan’s Nikkei was in profit, while South Korea’s Kospi, China’s Shanghai Composite and Hong Kong’s Hang Seng closed with losses. Most of the markets in Europe were trading with gains in the afternoon session. There was a rise in American markets on Tuesday. Global oil standard Brent crude fell two percent to $ 74.02 per barrel. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 2,569.41 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) bought shares worth Rs 3,030.96 crore.