The benchmark Sensex on Monday jumped 454 points in a rally led by finance stocks even as apprehensions over protectionist US policies under Donald Trump capped the upside.
The 30-share gauge leapt 454.11 points or 0.59 per cent to end at 77073.44 after surging 699.61 points or 0.91 per cent during intra-day trades to 77318.94. At the NSE, the Nifty climbed 141.55 points to 23344.75.
Market circles attributed the gains largely to the ongoing results season. This was reflected in Kotak Mahindra Bank whose shares zoomed 9.15 per cent after it reported a 10 per cent rise in net profits for the quarter ended December 31, 2024.
On the other end, the Zomato share crashed 3.14 per cent as its numbers fell short of expectations.
Market players were eagerly watching the second term of Donald Trump with the 47th President expected to make a flurry of announcements after taking oath.
While the fears of higher tariffs since his victory have led to emerging market stocks take a beating and the US dollar gaining, analysts say his pro-business policies could have a positive impact on the US economy.
The stock markets also reacted positively to the conversation between Trump and Chinese leader Xi Jinping, though many are of the view that these are early days. The call led to some amount of optimism that Trump may not announce aggressive tariffs.
“All else being equal, we anticipate the US market to become gradually more broad-based over the next two to three years. This expectation stems from the belief that under Trump, there could be a general acceleration in small business recovery, which has struggled since 2021. Assuming the US economy remains stable, this normalisation appears likely,’’ Arindam Mandal, head of global equities at Marcellus, said.
At the forex markets, the rupee also ended marginally higher as the dollar retraced some of its ground overseas.
The rupee closed at 86.5675 against the previous close of 86.61. Experts, however, say that the domestic unit could come under fresh pressure if Trump goes ahead with the proposed trade tariffs which could drive inflation.
