MUMBAI: Stock markets surged on Wednesday, with the Sensex rallying over 900 points as investor sentiment was buoyed by expectations of a Donald Trump victory in the U.S. presidential elections.
The benchmark BSE Sensex climbed 901.50 points, or 1.13 per cent, to close at 80,378.13, continuing its upward momentum for the second consecutive day.
At its peak, the Sensex soared 1,093.1 points, or 1.37 per cent, reaching 80,569.73.
The NSE Nifty also posted gains, advancing by 270.75 points, or 1.12 per cent, to close at 24,484.05.
Leading the rally were IT giants Tata Consultancy Services and Infosys, each climbing over 4 per cent, as well as notable gains from HCL Technologies, Tech Mahindra, Adani Ports, Larsen & Toubro, Maruti, and Reliance Industries.
Laggards
However, not all sectors shared in the gains; Titan, IndusInd Bank, Hindustan Unilever, Axis Bank, and HDFC Bank were among the day’s laggards.
Global markets experienced a relief rally as the election outcome reduced political uncertainty, with a Trump win sparking expectations of tax cuts and boosted government spending.
The domestic rally was largely fueled by broad-based buying in IT stocks, driven by anticipated increases in US spending on technology and improvements in the BFSI sector, according to recent IT sector results.
Asian markets
Asian markets had mixed performances, with Tokyo closing higher while Seoul, Shanghai, and Hong Kong ended in the red.
European markets opened with gains, and Wall Street had finished sharply higher on Tuesday. Meanwhile, Brent crude, the global oil benchmark, fell 2 per cent to $74.02 per barrel.
Data from the previous session shows Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs2,569.41 crore, while Domestic Institutional Investors (DIIs) were net buyers, purchasing Rs3,030.96 crore in shares. This bounce-back followed a sharp dip on Monday, with the Sensex rising by 694.39 points, or 0.88 per cent, to close at 79,476.63 on Tuesday, and the Nifty climbing by 217.95 points, or 0.91%, to reach 24,213.30.
