Headline indices BSE Sensex and Nifty 50 ended nearly one per cent higher on Wednesday ahead of the US presidential poll outcome. According to Reuters, Democratic candidate Joe Biden has secured 224 electoral votes so far, while Republican candidate Donald Trump has won 213. The candidate that receives a majority of the 538 electoral votes, […]
Nifty has gained 4.6 per cent since last Diwali while Midcaps outperformed the Nifty and are up 9.3 per cent
Headline indices BSE Sensex and Nifty 50 ended nearly one per cent higher on Wednesday ahead of the US presidential poll outcome. According to Reuters, Democratic candidate Joe Biden has secured 224 electoral votes so far, while Republican candidate Donald Trump has won 213. The candidate that receives a majority of the 538 electoral votes, or at least 270 votes, will win the presidency. BSE Sensex ended 355 points or 0.88 per cent higher at 40,616, while the broader Nifty 50 index gained 95 points or 0.80 per cent to finish at 11,908. India VIX slipped over 4 per cent to 23.2 levels. In the broader market, the S&P BSE MidCap index ended 0.43 per cent higher at 15,086, while the S&P BSE SmallCap index finished at 14,883, up 0.33 per cent.
The election results are unlikely on the election night and it could possibly take much longer for the final results to come out. The market initially opened with a lot of optimism but now it seems quite unclear how the results will pan out. Even in case of democrat Presidential win, the senate control could still be in the hands of republicans translating to a weaker democrat win. The emphatic stimulus that was expected post elections will take more time. Markets in the short period could be jittery as election verdict could still swing either way. The election has turned out to be much tighter than anticipated with new challenges emerging.
A close contest in the US election spiked volatility in the global market after yesterday’s strong rally. However, Indian market was not so volatile as the outcome is not expected to change the country’s strategic outlook. Benchmark indices were supported by IT & Pharma sectoral rally due to strengthening of USD. Expectation of another set of domestic stimulus also helped to raise investor’s confidence. Political developments in the US along with likely measures to be announced by the Fed from the ongoing meetings will drive the market.
Deepak Jasani, Head of Retail Research, HDFC Securities
Analysts have said a Biden victory could weaken the dollar and lift trade-exposed currencies, as it is expected to adopt a less combative stance on the region’s economic engine, China, and a steadier foreign and trade policy overall. Nifty has closed at the highest since Oct 23 and is just 118 points away from making a recent high. This does not seem difficult despite the uncertainty over the final outcome of US Presidential elections.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services
The US Elections outcome fueled the volatility on the global landscape as well and Indian markets did not stay unaffected. Following a sharp rebound in the second half of the day, there are high possibilities that we may test the 12000 levels again. This being said, we can expect a volatile start to the day and the overnight sentiment in the US will have its effect on Indian markets as well. Apart from this, the weekly Options expiry will also affect the session with 12300 strike having the maximum Call OI concentration followed by 12000 levels. For tomorrow, the levels of 12000 and 12065 would be probable resistance points, supports will come in at 11800 and 11750.