Markets cheer Obama win, Sensex closes at 1-month high

Markets cheer Obama win, Sensex closes at 1-month high Mumbai: Barack Obama's re-election as the US President brought cheer to Indian stock market pushing the BSE benchmark Sensex up 85 points to close Wednesday at a one-month high of 18,902.41 on hopes of revival of global economy.

With this, the 30-share index extended its winning run to the sixth straight day after gaining 386 points in last five trading sessions.

The Sensex opened lower but picked up pace to touch the day's high of 18,973.43, up 156 points, on expectations that Obama's second term will help uplift business sentiment and lead to economic resurgence in America.

Finance Minister P Chidambaram Wednesday expressed the hope that economic ties with the United States would improve with the re-election of Barack Obama as the US President.

"I congratulate President Obama. I hope that Indo-US relations (will) get stronger...Especially economic relations", he told reporters in New Delhi.

After witnessing some profit-booking in late trades, the Sensex closed with a gain of 85.03 points, or 0.45 percent, at 18,902.41 -- a level closer to 18,938.46 seen on October 5.

"With the re-election of Obama as US President, the period of uncertainty and anxiety on this issue has ended. The gains in Indian stock indices is a reflection of the optimism that quantitative easing measures would continue under Obama's regime," said Amar Ambani, Head of Research, IIFL.

The NSE 50-share Nifty also firmed up by 35.70 points or 0.62 percent to 5,760.10. The market breadth was positive as 1,672 shares finished higher while 1,205 scrips ended lower.

Information technology stocks, including Infosys and TCS, closed with gains. The Indian software companies get over 50 percent revenue from the US and European markets.

Wednesday's rise was also on the back of stocks from realty and banking space, including SBI, HDFC and ICICI Bank.

However, Bharti Airtel shares ended nearly 1 percent lower after reporting 11th consecutive quarter of profit dip.

With reports trickling in about the outcome of US Presidential polls, most Asian indices ended in positive zone. European markets after opening higher, were trading up 0.3-0.8 percent range in afternoon trade.

Key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan ended higher, while those from China and Japan finished with minor losses.
"The Shanghai Composite (China) ended the day flat as relief over the US elections was offset by apprehension over China's leadership change set to start tomorrow. The NIKKEI (Japan) ended the day almost flat as the Yen strengthened after US poll verdict and mixed set of results from index heavyweights," said GEPL Capital.

Benchmark indices in UK (FTSE), Germany (DAX) and France (CAC) were up between 0.26 percent to 0.80 percent. Indications of higher opening at US index futures also boosted the global market sentiment.

Back home, 23 scrips of the 30-share Sensex pack ended with gains while seven declined. Major gainers from the Sensex were HDFC (1.92 percent), SBI (1.91 percent), BHEL (1.70 percent), Hindalco (1.02 percent), ICICI Bank (0.96 percent) and Maruti (0.92 percent).

However, Tata Power dropped by 2.44 percent, followed by Bharti Airtel (0.88 percent), CIL (0.88 percent) and RIL (0.58 percent).

Among the sectoral indices, the BSE-Realty shot up 2.76 percent, followed by the Bankex (1.07 percent), the BSE-IT (0.66 percent), the BSE-Auto (0.62 percent) and the BSE-Teck (0.56 percent).

The total turnover improved further to Rs 2,328.56 crore from Tuesday's closing level of Rs 2,269.15 crore.

Foreign Institutional Investors (FIIs) bought shares worth a net Rs 174.62 crore Tuesday as per provisional data from the stock exchanges.

PTI