Indian equity benchmarks closed sharply higher on Wednesday, with the Sensex breaching the 80,000 mark and Nifty approaching 24,500, driven by strong performance in IT stocks as early U.S. election results pointed to Donald Trump’s potential return to presidency.

The BSE Sensex jumped 901.50 points or 1.13 per cent to close at 80,378.13, while the NSE Nifty 50 gained 270.75 points or 1.12 per cent to end at 24,484.05. The market breadth was overwhelmingly positive, with 2,999 stocks advancing and 969 declining on the BSE.

“The global markets experienced a relief rally following the US election results, reducing political uncertainty with Trump securing a strong mandate. This has led to strong risk-on sentiments, driven by expectations of tax cuts and increased government spending,” said Vinod Nair, Head of Research at Geojit Financial Services.

The IT sector emerged as the top performer, with major companies posting significant gains. TCS rose 4.32 per cent, followed by Wipro and HCL Tech, both up 3.92 per cent. The sector’s rally was supported by better-than-expected U.S. non-manufacturing PMI data, which came in at 56.0 against the forecasted 53.8.

“The domestic buying was broad-based, with IT leading the charge in anticipation of rebound in IT spending in the US. BFSI spending in the US has improved as per the IT Q2 result which is positive for Indian players,” Nair added.

Among other top gainers, BEL led with a 5.33 per cent increase, while Adani Enterprises climbed 4.48 per cent. On the flip side, SBI Life dropped 1.60 per cent, Titan declined 1.45 per cent, HDFC Life fell 1.11 per cent, IndusInd Bank decreased 0.91 per cent, and Trent slipped 0.55 per cent.

The broader market indices outperformed the benchmarks, with Nifty Next 50 surging 2.28 per cent to 71,389.80 and Nifty Midcap Select rising 2.29 per cent to 12,654.95. Banking indices showed modest gains, with Nifty Bank up 0.21 per cent at 52,317.40 and Nifty Financial Services advancing 0.22 per cent to 24,181.20.

“The market surpassed all significant levels, driven by positive sentiment across various asset classes worldwide. The potential verdict for Mr. Trump boosted US stock futures, leading to short covering in other markets,” noted Shrikant Chouhan, Head Equity Research at Kotak Securities.

The market’s strength was further evidenced by 237 stocks hitting 52-week highs, while only 12 touched 52-week lows. The volatility index, India VIX, declined by 8.20 per cent to 14.80, indicating reduced market anxiety.

However, some experts urged caution. “The feel good factor of Trump’s win in the US election had a rub-off effect on world equity markets, including local indices... However, investors remain skeptical about the recovery, as there has been no let up in FII selling in the domestic equity market,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Looking ahead, analysts suggest the market could see further upside. “The present upside bounce of last couple of sessions is confirming a formation of crucial bottom reversal pattern around 23800 levels. Hence, a decisive move above the key overhead resistance of 24500 could open more upside ahead,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

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