Stock market today: Indian equity benchmark indices, BSE Sensex and Nifty50, surged in trade on Wednesday with Republican candidate Donald Trump seen to have an edge over Kamala Harris in US presidential elections. While BSE Senses surged 700 points, Nifty50 moved above 24,400. At 12:15 PM, BSE Sensex was trading at 80,174.53, up 698 points or 0.88%. Nifty50 was at 24,421.15, up 208 points or 0.86%.
The gains in Indian stock markets were led by financial and IT sectors during the ongoing U.S. presidential election result counting.
Analysts suggest that a Trump victory could reduce U.S. corporate taxes, potentially benefiting Indian equity sectors through increased spending. Alternatively, a Harris win signals policy stability, likely having a neutral to slightly positive effect on Indian stocks.
Among Sensex components, HCL Tech, Maruti, Infosys, Bajaj Finance, Sun Pharma, and Bajaj Finserv showed gains, while Titan, Tata Steel, JSW Steel, HUL, and Kotak Mahindra Bank declined.
Titan shares declined over 3% following Q2 consolidated profit reduction of 23.1% to Rs 704 crore YoY, attributed to customs duty reduction impact.
Dr Reddy's Labs shares increased by 3% in early trading after reporting 17% YoY Q2 revenue growth to Rs 8,016 crore.
Sectoral performance showed broad-based gains except for Nifty Metal. Nifty IT, Pharma, and Realty gained over 1%, while Auto, Media, PSU Bank, Healthcare, and Oil & Gas sectors rose above 0.5%.
"The sharp rebound in the market yesterday indicates a halt to the downward trend witnessed during the last many days. The fact that the rebound is being led by fairly-valued and fundamentally strong large banking stocks is important and points to the possibility of the continuation of the trend. However, the poor earnings growth in Q2 and earnings downgrades for FY 25 are headwinds that will constrain a sustained rally," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"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," Vijayakumar added.