With the US elections now moving towards a decisive phase, what is your view on the Nifty and the Sensex?
Answer
Answer
The indices began weak on Wednesday but Nifty and Sensex bounced back sharply. The Nifty closed above the 11,900 mark even as the Sensex closed decisively above the 40,000 level. While banks participated, it was IT and Reliance that staged a huge comeback.
To a large extent this seems to be driven by the progress on the US elections. There is a quick rally likely across global markets as Biden gets closer to the 270 mark which is the magic cut-off. That puts to rest most of the concerns over the last few days of uncertainty.
Foreign portfolio investors or FPIs were net buyers to the tune of Rs.146 crore while DFIs sold Rs.5 crore on Wednesday. That is hardly decisive but then it is likely to get a lot more decisive as the outcome of the election becomes clearer.
The rally was underlined in the global markets too. For example, the Dow was up 1.5% while NASDAQ jumped 4% on Wednesday. This trend was seen across Asia and Europe too. Even the SGX Nifty is 2% higher in early trades at 12,100 levels promising a gap-up opening. US elections could be the trigger that markets were waiting for.