Foreign buying, softer crude lift Dalal Street; Sensex closes above 77,300
Following the US midterm elections, Indian investors are buoyed by hopes of decreased global trade tensions. The Sensex surged by 383.55 points, closing at 77,301.40, while the Nifty increased by 149.75 points to end at 23,960.60, highlighting a significant rebound for the indices. Analysts believe reduced geopolitical risks could enhance India's economic prospects, despite a mixed performance in…
Foreign investment, a softer crude oil price, and reduced geopolitical tensions fueled a rise in India's stock market on Wednesday. The Sensex climbed 383.55 points, or 0.50%, to reach 77,301.40, while the Nifty climbed 149.75 points, or 0.63%, to close at 23,960.60.The benchmark index marked its 200-day moving average for the first time since February 23, while the Nifty neared but missed the milestone after 171 trading sessions below the long-term trend indicator.Market observers attribute the positive performance to the outcome of the US midterm elections, where Democrats regained control of Congress.
This shift in political power could ease global trade tensions and geopolitical risks, benefiting emerging markets such as India. The new political landscape may lead to more favorable trade negotiations, commodity prices, and foreign capital flows for Indian equities.Rahul Singh, Chief Investment Officer - Equities at Tata Asset Management, believes that any easing of global trade tensions and geopolitical uncertainties could have positive implications for India.
This, in turn, could moderate commodity costs and inflationary pressures, which have been a significant concern for the Indian economy.The impact of the US political shift is expected to be mixed across Asian markets. While semiconductor and AI-linked stocks faced pressure due to concerns about a slowdown in US AI investments under a Democratic-controlled Congress, other markets like the Kospi recovered and the Nikkei 225 pared most of its decline.
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