Donald Trump's strong position in the US election has lifted markets, with the dollar and cryptocurrencies rising, while crude oil and gold prices fell.
Major stock indices saw gains from the start of the day. The Sensex climbed to 80,115, and the Nifty reached 24,415. Both midcap and smallcap indices rose by over 1 percent.
All sectors except metals were up in the morning, with IT, real estate, auto, and oil and gas stocks showing gains.
India may reap benefits
There’s speculation that Trump may impose heavy tariffs on Chinese products, which could boost exports from India. Many also believe that more companies will shift their operations from China to India.
Trump’s majority in the US Congress could speed up legislation, making decisions easier to implement.
Shares of Federal Bank dropped below Rs 204 after opening at Rs 206.90.
Titan Ltd’s shares fell by 3.5 percent after its second-quarter profits declined.
JK Tyre’s shares dropped by 2.5 percent due to a sharp drop in profit margins during the second quarter.
Hindustan Zinc Ltd’s shares fell 8 percent after an offer for sale of shares caused a drop in its stock price.
On a positive note, GAIL saw an increase in both profit and profit margin, pushing its stock price up by 6 percent. Foreign brokerage Jefferies has set a target price of Rs 240 for the stock.
The Indian rupee weakened further today, with the dollar opening six paise higher at a record Rs 84.17, and later rising to Rs 84.19. This is despite the dollar index climbing to the mid-105 range. Exchange rates will likely fluctuate as the US election results become clearer.
Gold fluctuates
Gold prices are fluctuating in the global market. The outcome of the US election will likely have a significant impact on gold prices in the short term. Gold traded between $2,730 and $2,747 per ounce this morning, falling below $2,735 as Trump's position strengthened.
In Kerala, the price of gold jewellery increased by Rs 80, reaching Rs 58,920.
Crude oil prices dropped by 1 percent in the morning, largely due to Trump’s progress in the election. Brent crude was priced at $74.79 per barrel.