Mumbai, Nov 4 (IANS) Despite uncertainty over the US President election verdict, the Indian equity markets made gains on Wednesday.
Positive domestic macro data along with healthy Q2 results led to the rise.
Globally, markets around the world were volatile as early results from the US Presidential election showed a close race, potentially leaving the outcome in doubt for days to come.
Analysts cited that majority of investors had initially wagered that a possible Democratic sweep by Joe Biden could ease political risk while promising a huge boost to fiscal stimulus.
Consequently, markets slid shortly after President Donald Trump played the voter fraud card which unsettled indices as a long and protracted battle in the courts is precisely what investors do not want.
Back home, volumes on the NSE were just above the recent average.
Among sectors, pharma, IT and banks were the main gainers while realty ended in the negative.
The Nifty50 on the National Stock Exchange closed at 11,908.50, higher by 95 points, or 0.8 per cent, from its previous close.
The Sensex closed at 40,616.14 points, higher by 355.01 points, or 0.88 per cent, from its previous close of 40,261.13.
“Nifty has closed at the highest since Oct 23 and is just 118 points away from making a recent high,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“This does not seem difficult despite the uncertainty over the final outcome of US Presidential elections.”
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Indian equity market was highly volatile today tracking results of the US presidential election which at present is a close fight between current president Donald Trump and Democratic candidate Joe Biden.”
“The overall structure of the market remains positive. Economic recovery continues, with high-frequency data for October coming in quite strong. More importantly, Covid-19 cases have seen meaningful decline to 560k active cases currently from the peak of 1.02m active cases in mid-September.”
Vinod Nair, Head of Research at Geojit Financial Services, said: “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 and pharma sectoral rally due to strengthening of USD. Expectation of another set of domestic stimulus also helped to raise investors’ confidence. Political developments in the US along with likely measures to be announced by the Fed from the ongoing meetings will drive the market.”
In addition, Naveen Kulkarni, Chief Investment Officer, Axis Securities said: “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.”