Indian stock exchanges surged ahead in opening trading on Tuesday in tandem with Asian equities, which were bullish in anticipation of a Democratic sweep in the US elections, clearing way for a much–awaited economic stimulus package.
The Bombay Stock Exchange’s benchmark 30-share sensitive index, Sensex, was up 465 points, trading at the 40,223-level.
Similarly, the National Stock Exchange’s (NSE) wider 50-share index, the Nifty, was up 135 points, trading at the 11,804.75-level.
Banking stocks like the ICICI Bank, IndusInd Bank, and HDFC Bank powered the rally on the Indian bourses. Other stocks that gained included Hero MotoCorp and TCS.
Apart from global sentiments, the Indian stocks also got a boost as the country’s industrial output expanded at its fastest rate in the month of October in over 10 years, according to a private survey.
The survey, the IHS Markit India Manufacturing Purchasing Manager’s Index, revealed that demand is recovering from COVID-led disruptions.
South Korea led gains across the Asian stocks. Equities markets in Singapore, Taiwan, Thailand, and Shanghai gained one percent, while Seoul was up almost two percent in opening trading.
Traders expect that a win for Democratic candidate Joe Biden is likely to ease US trade tensions with China. It is also expected that a Biden win will pave the way for another stimulus package that the US markets had been long expecting. The US government rolled out an economic stimulus package worth $2 trillion in March, as the COVID pandemic hit.