There are many speculations before the US election results on Indian markets. Most of them predict that markets would see new lows after the defeat of President Donald Trump.
It seems their assumptions proved to be wrong. Indian stock markets welcome the new President Joe Biden. November 09th was the first trading session after the US President Elections have announced. Both Sensex and Nifty have rallied to record highs.
The rally was triggered by the relief that Biden’s victory will instill the confidence among the investors in the stock market. Democrat’s victory is considerably reducing the political uncertainty. The biggest gainers in early trade are financial stocks like ICICI Bank and Axis Bank as well as Information Technology (IT) shares like Infosys and Tech Mahindra also surged. Analysts feel Biden’s victory is also being seen as positive sign for IT companies.
IT companies get 70% of their revenues from North America. Indian IT companies feel suffocated with President Donald Trump changed H-1B visa policy. They are in worrisome in paying high salaries to their employees as per the new regulations or else reduced the manpower who worked in United States. BSE and NIFTY have been rising over the last week as Biden slowly inched towards the victory. Market experts believe that Joe Biden’s entry into White House will be beneficial for Indian markets and companies. New highs in markets brought a sigh of relief for investors and companies that are still grappling with the consequences of coronavirus induced economic low.
Comments