Obama Re-elected President, Markets Up 0.30%

The Indian markets are trading higher this morning, with the Sensex and Nifty up by almost 0.30%. The verdict on the US elections has come in, and Barack Obama has been re-elected as President of the United States. Media reports suggest that Obama has received around 284 votes against the mandatory requirement (for winning) of 270 votes. There was a general consensus that he would be brought in as the US President again, and the same has been priced in the global markets.

Among the sectoral indices Realty, Metals and Bankex are higher in the green zone. Oil & Gas is the only index trading down by 0.08%. IT and Teck are also trading on a quiet note (up about 0.40%) and there is no major volatility seen in these due to the US elections.

In the Asian markets, Shanghai and Hang Seng are trading marginally in the negatives, while Nikkei is nominally in the green zone (+ 0.01%). Reports suggest that the Japanese stocks saw a rise as companies from Nissan Motor Co. to Taiyo Yuden Co. posted their earnings and as US President Barack Obama won a second term in office.

Back home, SBI is the leading index gainer, 1.48% up at Rs 2205.10 per share ahead of its Sept quarter numbers due on Friday. Private banking names like ICICI Bank and HDFC Bank are also higher by 1.12% and 0.19% respectively. Metals stocks like Hindalco, Jindal Steel, Sterlite Industries and Tata Steel have gained more than 1% each. Others like Hero MotoCorp, GAIL India, ITC, M&M, Infosys, etc. are marginally in the green zone.

On the flip side, Tata Power is the leading index loser, 1.36% down at Rs 105 per share. Other heavyweights like HUL and RIL have shed 0.84% and 0.24% respectively. Stocks like Bharti Airtel, Coal India and ONGC are also trading lower.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1351 shares have advanced, 698 shares have declined and 109 shares are unchanged.

We expect the markets to remain positive for the day, but would take cues from the European markets and could see some volatility. Hence, would advise investors to play with caution.