India Stocks Erase 2020’s Losses as U.S. Vote Count Nears End
Stocks gained along with Asian peers as investors assess the prospects of a Biden presidency with a split congress in the U.S.
(Bloomberg) -- India stocks gained along with Asian peers as investors assess the prospects of a Joe Biden presidency with a split Congress in the U.S.
The S&P BSE Sensex climbed 1.8% to 41,340.2 in Mumbai, wiping out year-to-date losses. The NSE Nifty 50 Index also advanced by 1.8%.
On Wednesday, Biden won Michigan and Wisconsin, putting him closer to taking the White House from President Donald Trump. He needs only to win an additional outstanding state, such as Nevada where he is leading, or Georgia, where his campaign believes absentee votes will push him over the top. Counting of ballots in some states is continuing.
“The U.S. election-driven trends could imply that Indian IT stocks and Reliance Industries as an internet play could gain traction and cyclical stocks including banks might lag,” analysts at Jefferies India, led by Mahesh Nandurkar, said in a note. “We believe that such a rotation could be tactical in the Indian context.”
The conclusion of the U.S. election would bring the focus back to the recovery in Asia’s third-largest economy, where sentiment has been buoyed by a pickup in consumer demand during the festival season and better-than-expected quarterly results. Some 25 of the 37 companies in the Nifty 50 that reported earnings so far have exceeded or matched analyst estimates.
Investors are also waiting to hear from Chair Jerome Powell, with the Federal Reserve expected to hold off from any major policy changes.
The Numbers
- All but one of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of metal companies
- All 30 companies listed on the Sensex rose, with State Bank of India Ltd. the biggest winner, surging 5.6%
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