Domestic stock markets joined a global market rally as Democrat US Presidential candidate Joe Biden moved ahead of US President Donald Trump and came within a striking distance of clinching a nail-biting election. The benchmark Sensex rallied by 724 points to an eight-month high of 41,340.16 and the NSE Nifty Index spurted 212 points to 12,120.30 as bulls continued to dominate for the third successive day and posted noticeable gains.
The rupee also gained by 40 paise to close at 74.36 against the US dollar amid indications of Biden’s victory and retreat of the US dollar. Experts said a delay in results announcement was already priced in by investors and say that the possibility that a Republican Senate would restrain a Democratic White House is giving stocks a boost. If Republicans hold the Senate, they will want to stop what they see as the Joe Biden “spending agenda” and “runaway federal debt”.
Vinod Nair, head of research at Geojit Financial Services, said, “Further, investors are expecting new supportive measures from ongoing Fed policy meet while keeping rates unchanged. Positive corporate results season and increasing inflows from foreign markets will help the market to maintain its optimism going forward.”
The broader markets, too, participated in the rally with both mid- and small-cap indices ending higher by 1.7 per cent each.
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