World

Biden Victory Reports in US Propel Indian Bourses to Record Highs, Sensex Up 614 Points

After getting knocked down from a peak of 41,935 in January due to COVID-19, India's Sensex slumped to 26,000 points at the end of March, when a lockdown was imposed. It has now surpassed its pre-COVID peak to set new records.
Sputnik

Indian bourses hit record highs in opening trading on Monday, as Democratic candidate Joe Biden is being projected as the winner of the US presidential election based on counting results so far.  

The Bombay Stock Exchange's 30 share benchmark index, Sensex, zoomed 673 points in the opening session on Monday to trade at 42,566. The Sensex surpassed the previous all-time high of 41,935 points witnessed pre-COVID on 17 January. 

Similarly, the wider 50–share index of the National Stock Exchange, Nifty, was up 120 points to trade at a record 12,383 points.

The markets are buoyant on the prospects of a second stimulus package promised by Biden in the build up to the elections, and a comparatively "calm" geo-political situation.

Global market analyst Ajay Bagga said in an interaction with a Hindi business news channel that under a Biden presidency, the market may gain from stability on the geopolitical front.

"Also, with a lack of a majority in the Senate, the Democrats will not be able to push through the tax hikes planned earlier. This is also helping the global markets", Bagga added.

In the run up to the elections, the Democratic camp had also promised that it would roll out a COVID economic stimulus package worth $1.8 trillion to $2.20 trillion. This is also powering the bourses as higher consumption in the US after the stimulus would help Indian exports.

Discuss