Indian Stock Market Rallies Ahead of Trump 2.0 Inauguration
Indian stock market ends on positive note, with an optimistic mood as US President-elect Donald Trump's inauguration approaches the country to mark him as its 47th president. It is because Indian benchmark indices have ended the day in the green. It has been because of strong Q3 earnings and favourable global cues.
On Monday, the BSE Sensex was up 454 points, at 0.59 percent, at 77,073.44, whereas the Nifty 50 managed to gain 141.55 points, 0.61%. On the Nifty 50 index, out of 50, as many as 29 stocks remained in the positive; on the other hand, there were 19 stocks that performed well on BSE Sensex, which portrayed a broad based positivity across different sectors.
Market experts attribute the positive movement to the optimism in the world regarding Trump's presidency, which is set to take place soon. Most Asian and European markets also trended upwards. Banking and telecom stocks were among the major drivers of the market's recovery. "Although the market sentiment is largely driven by external factors, there remains a sense of uncertainty, amplified by extreme volatility. Domestic investors are likely to remain focused on the Union Budget, which will be presented on February 1," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
The biggest gainer in the day on both the Nifty 50 and Sensex was Kotak Mahindra Bank, with an increase of 9.35%. Wipro, NTPC, Bajaj Finserv, and Bajaj Finance also emerged as major gainers. Losers in the day included SBI Life, Tech Mahindra, TCS, and HDFC Life. Of the Sensex's major losers, TCS led the list, followed by Tech Mahindra and ITC.
The banking sector saw strong gains, with private banks leading the rally, while PSU banks also surged by 2.28%. Other sectors such as financial services saw positive moves, while the auto index emerged as the top loser, followed by FMCG and IT.
Experts believe that the strong positive sentiment from Asian markets provided a good base for the Indian market to begin the week on a healthy note. The focus now shifts to the Union Budget and its potential impact on the economy.
