Sensex in green on continuing QE hopes; Hindalco up

The Indian stock markets closed in the green after the decisive outcome of the US presidential elections boosted sentiment.

The Sensex closed at 18902.41 0.45 percent up and the Nifty closed at 5760.10, 0.62 percent up.

Barack Obama’s victory has reassured the market that the third round of quantitative easing started by the Federal Reserve will be taken forward.

Taking cues, European stocks also rallied early, Reuters reported. Banking stocks were among the biggest gainers after France’s BNP Paribas pleased investors with forecast-beating quarterly earnings.

[caption id=“attachment_518145” align=“alignleft” width=“380”]  Reuters[/caption]

BNP was up 4.7 percent, Societe Generale up 2.7 percent and Credit Agricole up 1.6 percent. However, analysts have already cautioned that the initial positive reaction will just be kneejerk and the focus will shift to the impending fiscal cliff in the US and the Obama administration’s strategy to resolve it.

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“If the market moves down because of debate on the fiscal cliff, then I am going to buy Indian equities. I think within emerging markets, India is one of the strongest growth stories,” Adrian Mowat of JP Morgan told CNBC TV18 early.

“If we get weakness, down around 5 percent, I am going to be buying Indian equities,” he said.

The BSE realty and banking indexes got a boost with investors betting on an increase in home sales during the festival season, in turn increasing the demand for loans.

Stocks in news

Tata Steel

was up 0.82 percent after the company said that it will amicably sort out the of a large fine imposed by the Odisha government for failing to adhere to mining norms in that state, insisting it has always acted within the law.

Bharti Airtel was down 0.88 after it reported its 11th consecutive quarter of profit decline as costs increased and a slowdown in customer additions limited revenue growth.

Hindalco was up 1 percent after the company warned of rising input costs may impact performance in coming quarters after higher costs and lower production volumes in its aluminium business resulted in a 29 percent fall in its quarterly profit from domestic operations.

Tata Motors edged up close to a percent ahead of its quarterly earnings.

Purvankara Projects was up 13 percent reacting to strong Q2 results.