Stock Markets Surge as Donald Trump Projected to Win US Presidential Election
On Wednesday, domestic stock markets in India responded positively to the projected victory of Republican candidate and former US president Donald Trump in the US presidential elections. The Nifty closed at 24,484.05, up by 270.75 points or 1.12%, while the BSE Sensex ended at 80,378.13, gaining 901.50 points or 1.13%. At one point, the BSE Sensex rose over 1000 points, and the Nifty reclaimed the 24,500 level.
On the National Stock Exchange (NSE), top gainers included Bharat Electronics Limited, Adani Enterprises, TCS, Wipro, and Infosys. Conversely, SBI Life Insurance, Titan, HDFC Life, IndusInd Bank, and Trent Limited were among the top losers. All sectoral indices on the NSE traded positively, with Nifty IT leading the surge at 3.99%, followed by Consumer Durables and Realty indices, which gained over 2% each.
Globally, markets reacted positively to Trump’s projected victory, with S&P 500 futures reaching a record high. European shares opened higher, following gains in US stock futures. In Asia, Japan’s Nikkei 225 rose by 2.61%, while China’s indices showed mixed results, with Hong Kong’s Hang Seng falling by 2.23%.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, noted that Trump’s “America First” trade policy could impact India’s exports to the US and affect collaboration in technology and defense. However, it might also lead to increased energy cooperation.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted a relief rally in global markets due to reduced political uncertainty and expectations of tax cuts and increased government spending. Varun Aggarwal, MD of Profit Idea, warned that Trump’s protectionist trade policies might challenge sectors like pharmaceuticals and IT in India.
Doubts Revealed
Stock Markets -: Stock markets are places where people buy and sell shares of companies. When the market ‘surges’, it means the value of these shares has gone up.
Donald Trump -: Donald Trump is a businessman and was the President of the United States. In this context, he was projected to win the US presidential election.
Nifty -: Nifty is a stock market index in India that represents the performance of 50 major companies listed on the National Stock Exchange (NSE).
BSE Sensex -: BSE Sensex is another stock market index in India, representing 30 well-established companies on the Bombay Stock Exchange (BSE).
Bharat Electronics -: Bharat Electronics is an Indian company that makes electronic products for the defense sector and other industries.
Infosys -: Infosys is a large Indian company that provides technology and consulting services to businesses around the world.
SBI Life Insurance -: SBI Life Insurance is an Indian company that offers life insurance products to help people financially protect their families.
Titan -: Titan is an Indian company known for making watches, jewelry, and other lifestyle products.
Nikkei 225 -: Nikkei 225 is a stock market index in Japan, similar to Nifty and Sensex in India, representing 225 large companies.
Exports -: Exports are goods and services that a country sells to other countries. They are important for a country’s economy.
Energy cooperation -: Energy cooperation refers to countries working together to share and develop energy resources, like oil and gas, to meet their needs.
