Markets Gain As Obama Wins

Indian shares today gave a green salutation over the re-selection of Barack Obama as President of the United States of America for the next four years again. BSE Sensex gained 85 points to 18902 while Nifty gained 35 points or by 0.6% to end the day on 5760 points. 

Similar trend was seen in the global markets as almost all markets across the globe were trading or had closed in green at the time of writing the report. In the Asian markets Nikkei and Shanghai markets closed flat while Hang Seng surged 0.7% while closing. Indices in South Korea, Taiwan were also showing significant gains today.

The European markets on the similar lines are trading in green. While CAC is heading towards making over 1% intraday gains, DAX and FTSE are also up over 0.5% gains.

Dow Jones and NASDAQ futures are also showing some gains at the moment therefore one can expect a positive opening in the US markets.

Among the sectors, Realty index closed as top gainer with 2.76% gains. Bankex also gained more than 1% on the hopes of rate cut by next quarter. While most indices closed the day in green, oil and gas index closed in red. Mid cap and Small cap indices were also up over 0.7%.

Among the Sensex stocks, shares HDFC gained 1.9%. The state owned lender SBI also gained 1.9%. ICICI bank, HDFC bank also gained as sentiment was lifted up on the banking and financial sector. State owned electricity equipment maker, BHEL also saw jump of 1.7% in its share price to Rs 236.40 per share. Dr. Reddy’s had gone up about 1%, but saw some profit booking and closed with 0.46% gains by closing. All three IT stocks in the index, Wipro, Infosys and TCS saw a jump in their share price after Obama Re-election. Maruti Suzuki which was down yesterday on the news of employee strike saw a recovery of 0.92% by closing.

On the other hand, Tata Power closed down 2.44% after company posted loss of Rs 83 crore against expected Rs 275 crore of net profit for the September quarter. Shares of Bharti Airtel also closed in red after its net profit for the quarter came in to Rs 721.2 crore against expectation of Rs 831 crore.

Tata Motors shares jumped 0.9% ahead of its result due today. Overall Street was expecting Tata Motors to post consolidated net profit up 17% at Rs 2,200 crore. After the market company reported the net profit of Rs 2075 crore which means tomorrow we may see some sell off of its shares.

Amongst the other stocks, Pharma Company Cadila Healthcare was down 3% on the bourses after the company reported 7% decline in its net profit. This was mainly on account of higher raw material costs. Gujarat Alkalies and Chemicals saw a jump of 3% after the company reported 78% jump in its net profit yesterday. Shares of Wockhardt amid a very bullish sentiment saw 4.24% rise in its share price to Rs 1624 per share.

Shares of Reliance Capital jumped over 3 per cent after company posted a net profit of Rs 401 crore for the September quarter.

The advance decline ratio on BSE indicated positive bias as total 55% shares advanced against total 40% declines.