Indian Stock Market Opens in Green Amid US Presidential Election Results
As the counting for the highly anticipated US presidential election began, the Indian stock market opened on a positive note on Wednesday, buoyed by strong buying interest across several sectors. The Sensex surged by 610 points, or 0.77%, to reach 80,087.35, while the Nifty gained 180 points, or 0.74%, settling at 24,393.40 at the opening bell.
Sectoral indices displayed broad-based strength, with notable buying observed in real estate, media, energy, private banking, and infrastructure stocks. Market breadth remained positive, with 1,820 stocks advancing on the National Stock Exchange (NSE), while 449 stocks declined.
The Nifty Bank index climbed to 52,289.75, a gain of 82.50 points or 0.16%. The Nifty Midcap 100 index saw a substantial increase, rising by 474.45 points (0.85%) to 56,589.90, while the Nifty Smallcap 100 index also showed solid gains, advancing 148.25 points (0.80%) to 18,651.70.
Among the top gainers in the Sensex pack were HCL Tech, ICICI Bank, Infosys, Bajaj Finserv, Bajaj Finance, Tech Mahindra, Maruti Suzuki, Sun Pharma, and Axis Bank. On the other hand, stocks such as Titan, Tata Steel, Hindustan Unilever Limited, Kotak Mahindra Bank, Tata Motors, and State Bank of India (SBI) were among the biggest laggards.
Rebound Signals Positive Market Sentiment
Market experts attributed the sharp market rebound on Tuesday to a potential reversal of the recent downward trend that had characterized the previous days. The recovery, they noted, was particularly notable as it was led by large, fundamentally strong banking stocks that are seen as undervalued, suggesting that the market may continue its upward momentum in the near term.
“The rebound being led by large banking stocks, which are fundamentally strong and fairly valued, indicates that this trend could persist. The market may stay resilient as long as it remains supported by these key sectors,” said a market analyst.
US Election Uncertainty to Impact Market in Short-Term
As the US election results continued to unfold, experts indicated that the immediate volatility driven by election-related news is likely to dissipate soon. Once the uncertainty surrounding the elections clears, economic fundamentals will likely play a more decisive role in shaping the direction of global and Indian markets.
In the broader Asian market, stocks in Jakarta, Shanghai, and Tokyo were trading in the green, while Seoul, Bangkok, and Hong Kong remained in the red in early trade on Wednesday. On the previous trading day, US stock markets closed in positive territory, with investors cautiously optimistic ahead of the election results.
FII and DII Activity
Foreign institutional investors (FIIs) were net sellers on November 5, offloading equities worth ₹2,569 crore. However, domestic institutional investors (DIIs) provided support, buying equities worth ₹3,030 crore on the same day, helping to cushion the market from sharp declines.
Looking Ahead
While market volatility linked to the US election is expected to subside in the coming days, analysts remain focused on the underlying economic fundamentals, which will likely set the tone for market movements in the weeks ahead. Investors are advised to closely monitor developments in global economic indicators and corporate earnings, as well as domestic economic growth trends, to better navigate potential market shifts.
As the US election results come into sharper focus, market participants are expected to adjust their positions accordingly, factoring in the broader implications for the global economy and financial markets.
