Domestic stock markets on Monday staged a strong rally to a record high after Joe Biden clinched the US presidency, boosting risk appetite and hopes of positive global developments emanating from the fact that more orderly conditions and aggressive pro-growth strategies may prevail with a change of regime in the US. The Sensex soared 704 points to close at a new peak of 42,597.43 and the Nifty50 soared 198 points to 12,461.05 in buying euphoria.
The Sensex has jumped 2,336 points in the last five sessions amid the volatility triggered by the US elections. Firm global cues and a clear majority to favourite Democratic party in the US election took benchmark indices to all-time highs.
On Monday, foreign portfolio investors (FPIs) invested a net of Rs 4,547 crore into domestic equities The rupee opened higher at 73.94 per dollar against previous close of 74.20 and closed at 74.15.
The US dollar fell to a 10-week low after enough states were called for Biden over the weekend following days of counting. Global markets were buoyed as the tighter-than-expected election, which may leave Republicans in control of the Senate, is expected to prevent a large US fiscal package, potentially putting the emphasis back on monetary stimulus, analysts said.
All the sectoral indices witnessed healthy buying interest wherein banks, telecom and metals were the top gainers.
Joseph Thomas, head of research, Emkay Wealth Management, said, “The market continued its upward trajectory across indices based on positive global developments emanating from the fact that more orderly conditions and aggressive pro-growth strategies may prevail with a change of regime in the US.”
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