BENGALURU: Indian stocks rose for a third straight session on Wednesday, as TI shares rose after a closed US presidential election pushed the dollar higher, and pharmaceutical stocks also provided support thanks to strong earnings from Sun Pharma.
The NSE Nifty 50 Index was up 0.44% to 11,869.55 at 0437 GMT and the S&P BSE Sensex was up 0.55% to 40,480.31.
The first results of the US presidential election showed a very close race between incumbent Donald Trump and his Democratic rival Joe Biden, causing a jump in the dollar, while the broader index of Asia-Pacific stocks MSCI outside Japan rose 0.1%.
“US policy will be positive toward India, no matter which candidate wins the election,” said Vinod Nair, head of research at Geojit Financial Services.
The United States is the fifth largest https://www.investindia.gov.in/country/united-states#:~:text=The%20US%20is%20the%205,were%20valued%20at%20%2449.4% Investor $ 20 billion in India, according to the New Delhi National Investment Promotion and Facilitation Agency. US data shows that the country has FDI positions https://www.selectusa.gov/servlet/servlet.FileDownload?file=015t00000003DBX of more than $ 45 billion in India as of 2019.
In trading on Wednesday, the Indian rupee weakened 0.37% to 74.68 against the dollar at 0437 GMT, boosting shares in IT services companies that mostly earn their income in US dollars. but they report it in Indian rupees.
The Nifty IT index rose as much as 3.5%, led by Infosys and Wipro, which gained 3.5% and 2.9%, respectively.
“The positive dollar has a multiplier effect on the margins of IT companies,” said Nair of Geojit.
Pharmaceutical company Sun Pharmaceutical Industries rose nearly 5% after the company posted optimistic earnings for the July-September quarter, boosting the Nifty Pharmaceutical Index by 2.2%.
The Nifty banking and financial indices fell 0.5% and 0.6%, respectively, breaking two earnings sessions.
India’s largest lender, State Bank of India, fell 0.8% above its earnings, scheduled for later in the day.
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