The US mid-term election energy has taken over Dalal Street today, as the Indian stock indices continue their winning streak. Investors are building on the Democratic sweep in the US elections, foreign fund inflows and easing oil prices.
Though Nifty 50 opened slightly lower on Wednesday, the market picked up pace. The benchmark index gained 0.56 per cent to reach a high of 23,946.35. On the other hand, Sensex opened green, rising 0.62 per cent to hit a high of 77,396.04.
The focus is on the US midterm elections, as the results could have broad implications for the West Asia war, crude oil prices and AI infrastructure buildout.
These issues are highly sensitive for Indian investors, as the Indian markets were heavily weighed down by high energy prices this year. Indian IT stocks were also wobbly, driven by AI disruption fears.
Brent crude prices have eased to a four-week low, hovering around $103 per barrel. Foreign investor interest is also back on track, with equities worth ₹6,836.81 bought on Tuesday.
The major leaders on the BSE were Bajaj Finserv, ITC, Adani Ports and BEL. Eternal, HUL, Bharti Airtel, Power Grid and TCS lagged at the bottom.
Bharat Electronics Limited shares rose after the defence PSU exceeded estimates in its Q2 earnings release. The company posted strong revenue and profit growth, and HSBC brokerage maintained a BUY rating with a target price of ₹525.
The ITC stock has seen a surprisingly positive outlook despite net profit tumbling in the second quarter, owing to high cigarette tax margins. However, growth across its non-cigarette business, coupled with its highest revenue growth in 14 quarters, has strengthened investor sentiment.
Adani port shares rose as Nomura maintained a BUY rating after the company earlier reported an 11 per cent increase in cargo traffic this October.
Stock in focus
BHEL shares are climbing after the PSU received four power projects from Adani Power at a contract value estimated at ₹20,000 to ₹28,000 crore. The state-owned engineering enterprise will supply services and equipment, including boilers, turbines and generators.
