Indian equity markets surged on Wednesday, with major indices climbing sharply as U.S. election updates pointed toward political clarity.
Investors responded with renewed buying interest, pushing benchmark indices higher. At 2:57 pm IST, the Nifty 50 is at 24,470, and the Bank Nifty is at 52,275.
Market Performance Overview
Both the BSE and NSE benchmarks recorded substantial gains. The Nifty rose by over 1.1% to touch 24,538, while the Sensex touched 80,570 in intra-day trading.
Export-focused sectors such as IT and pharmaceuticals stood out, fueled by optimism about favorable U.S. trade policies potentially benefitting Indian exports. The Nifty IT index rose over 4% to reach 42,090, while the Nifty Pharma index gained 1.2%.
Analysis of Potential U.S. Policy Impacts
Nitin Aggarwal, Director of Investment Research at Client Associates, observed that future U.S. trade policies might shift to reduce the trade deficit, which could impact foreign exporters, including those from India.
For sectors like IT and pharmaceuticals, such policies could introduce new challenges but also opportunities, depending on the specific measures implemented.
Aggarwal commented, “If trade tariffs are introduced, they may influence the U.S. trade balance, though they could also contribute to inflationary pressures and affect interest rate policies.”
Sectoral Impacts
Two key Indian export sectors — pharmaceuticals and IT services — could face challenges under changing U.S. trade policies:
- Pharmaceuticals: Indian generics could experience tariff increases, affecting their market competitiveness in the U.S.
- IT Services: An economic slowdown in the U.S. could lead to reduced discretionary spending by clients, impacting demand for Indian IT services.
These possibilities underscore how these sectors, heavily reliant on U.S. markets, may face headwinds if trade policies shift significantly.
Technical Analysis of Key Indices
Nifty IT Index
- Current Level: 42,035
- Key Support Levels: 40,900
- Resistance Points: 43,730, 44,830, 45,725
- Intraday RSI: 78.6
The Nifty IT index remains above its 100-day moving average and is testing its 50-DMA. With support at 40,900, analysts see possible gains if it sustains these levels, though resistance remains at the upper levels.
Nifty Pharma Index
- Current Level: 22,910
- Key Support Levels: 22,309, 21,450
- Resistance Points: 23,560, 23,770, 24,300
- Intraday RSI: 61.20
The Nifty Pharma index holds above its 20-week moving average (WMA), a key support since late 2023. Analysts suggest that staying above these levels could lead to a positive trend toward 25,000.
Technical Outlook Disclaimer –The technical analysis and projections provided in this article are based on current market data and prevailing trends. Market conditions are subject to change, and past performance is not indicative of future results. These insights should not be interpreted as financial or investment advice. Readers are encouraged to conduct their research and consider their own financial situation, risk tolerance, and investment goals before making any investment decisions. MarketScope Daily and its contributors are not responsible for any losses arising from investment activities related to this information.
Economic Outlook
With political developments offering more clarity, Indian markets may continue to attract attention.
Potential policy changes in the U.S. could bring new dynamics for sectors such as pharmaceuticals and IT, where companies heavily depend on the U.S. market.
Investors are encouraged to monitor upcoming trade policy developments and assess their portfolios accordingly.
This mid-week surge highlights how international policy news influences Indian markets. Investors focusing on sectors with lower U.S. exposure may find such times beneficial while continuing to stay vigilant about global economic shifts.
Disclaimer – The information provided in this article is for general informational purposes only and does not constitute financial, investment, or legal advice. While MarketScope Daily strives for accuracy, we cannot guarantee the completeness or reliability of any data presented. Readers are encouraged to perform their research, consult with a licensed financial advisor, and consider their individual financial situation before making any investment decisions. MarketScope Daily and its contributors disclaim any liability for financial losses or damages arising from the use of this information. Investments are subject to market risks, including potential loss of principal.
