Equities end at record highs on global cues post US Prez election
Mumbai, November 9, 2020
Clarity on US election results, along with fast-paced economic recovery, lifted the Indian equities markets to new record closing highs on Monday.
The uptrend continued for the fifth consecutive session on Monday with the Nifty closing the day 197 points higher.
Markets rallied on hopes of fewer regulations and a bigger stimulus package for the US economy under a Joe Biden administration.
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.
The 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.
"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.