Mumbai, Nov 9 : Clarity on US election results, along with fast-paced economic recovery and healthy Q2 results, lifted the Indian equities markets to new record closing highs on Monday.
The up trend continued for the fifth consecutive session on Monday with Nifty closing the day 197 points higher.
Although market experts had suggested that Donald Trump’s loss in the Presidential election would lead to a fall in the global stock markets, the markets taken a firm trend northwards after it became clear that Joe Biden, the Democrat candidate, will succeed Trump at the White House.
Accordingly, markets rallied on hopes of fewer regulations, easing of protectionist measures brought in by Trump and a bigger stimulus package for the US economy under a Biden administration.
Besides, the FII, FPI inflows on the BSE, the NSE and the MSEI in capital market segment stood at Rs 4,548.39 crore.
Among sectors, major gainers were banks, telecom and PSU stocks.
There was also positive movement in IT stocks as expectations rose on lesser restrictions on outsourcing by the new regime in the US.
The Nifty50 on the National Stock Exchange closed at 12,461.05, higher by 197.50 points, or 1.61 per cent, from its previous close.
It touched a record high of 12,474.05 points.
The S&P BSE Sensex closed at 42,597.43 points, higher by 704.37 points, or 1.68 per cent, from its previous close of 41,893.06.
In the intra-day, the Sensex made a record high of 42,645.33 points.
The two indices previous record high levels were made on January 20 of 12,300 and 41,75 points.
“The clarity on the outcome of the US Election has spread cheer for the global equity market,” said Nish Bhatt, Founder and CEO, Millwood Kane International.
“Indian market scaled fresh life highs in early trade. A stronger bilateral relationship with the US under the new administration will help Indian businesses. President-elect Joe Biden’s plans to reverse most of the tough decisions taken by Trump on visa and immigration plans to increase the H-1B visa limit and remove any country quota for green cards is a big positive for Indian IT companies.”
He said that Biden at White House means less protectionism, and a sign of ending tariff wars.
“The US economy needs a fresh stimulus package for a revival. India seems to be in a sweet spot and may gain as the US under Joe Biden is unlikely to ease pressure on China,” Bhatt added.
According to Nagaraj Shetti, Technical Research Analyst at HDFC Securities: “The near term trend of Nifty continues to be positive and more upside could be in store in the coming sessions.”
“The overall chart pattern indicate more new highs in the coming sessions. The upside targets to be watched around 12,750-12,800 levels in the next 1-2 weeks.”
Further, hopes of easing H-1B visa norms which would be favourable also supported the Indian market.
Hemang Jani, Head – Equity Strategist, Motilal Oswal Financial Services said: “There is an expectation of more flows into EMS due to weakness in the US dollar and that is reflecting in the strong performance across emerging markets.”
“We expect the Indian markets to remain strong as the major event (US Elections) is out of the way and earnings recovery is becoming stronger.”
Disclaimer: This story is auto-generated from IANS service.