New Delhi, Nov 6 (PTI) IT stocks appreciated sharply on Wednesday, fuelling a rally in the benchmark indices after it became clear that Donald Trump will take over as the next US president for the second term.
Shares of Tata Consultancy Services surged 4.21 per cent, Infosys jumped 4.02 per cent, Tech Mahindra soared 3.85 per cent, and HCL Technologies climbed 3.71 per cent on the BSE.
Also, Persistent Systems zoomed 5.86 per cent, LTIMindtree jumped 4.75 per cent, and Wipro advanced 3.75 per cent.
The BSE IT index surged 4.04 per cent.
Trump on Wednesday won the US presidency for a second term in one of the greatest political comebacks in American history, cruising past his Democratic rival Kamala Harris in a bitterly fought election.
"Given their significant presence in the US market, IT companies may benefit from a rebound in US equities following the Republican sweep in the US elections, which is one of the major factors behind today's gain in the Indian stock market.
"Strong quarterly results from IT companies or optimistic profit expectations could stimulate purchasing interest. Another reason is that Foreign Portfolio Investors (FPIs) may be reviving their interest in Indian IT stocks, which would raise buying pressure," Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said.
The BSE Sensex jumped 901.50 points or 1.13 per cent to settle at 80,378.13. During the day, it soared 1,093.1 points or 1.37 per cent to 80,569.73. The NSE Nifty soared 270.75 points or 1.12 per cent to 24,484.05.
"The feel-good factor of Trump's win in the US election had a rub-off effect on world equity markets, including local indices as domestic investors resorted to value buying, especially in IT stocks, which pushed the benchmark Sensex above the 80k mark. The market is hoping that the new regime will not hurt the HIB visa rules, leading to a rally in the recently beaten-down IT stocks," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Vinod Nair, Head of Research, Geojit Financial Services, said, "The domestic buying was broad-based, with IT leading the charge in anticipation of a rebound in IT spending in the US. BFSI spending in the US has improved as per the IT Q2 result which is positive for Indian players".