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Stocks soared following the election of Donald Trump as the 47th President of the United States. Investors anticipated that the Information Technology (IT) sector would benefit from lower corporate taxes under the Republican regime, with IT stocks leading the rally.

Continuing its upward momentum into the second day, the BSE Sensex surged 901.50 points, closing at 80,569.13. During intraday trading, it soared 1,093.1 points, briefly reaching 80,569.73. Meanwhile, the NSE Nifty gained 270.75 points, ending at 24,484.05.

The U.S. stock market, including shares of Tesla and banks, also experienced significant gains as investors speculated that Trump’s return to the White House would positively impact the economy. Shares in Tesla, backed by CEO Elon Musk, surged by as much as 13% at the start of trading in New York. The S&P 500 and Dow Jones Industrial Average reached all-time highs, with the Nasdaq also climbing.

The Dow Jones Industrial Average rose by 1,420 points, reaching 43,642.27. This was the first time since November 2022 that the Dow had gained over 1,000 points in a single day. In India, IT stocks led the way, with Tata Consultancy Services (TCS) rising the most, up 4.21%. Infosys, HCL Technologies, and Tech Mahindra also saw significant gains, with increases of up to 4.02%. Trump’s pledge to cut corporate taxes is expected to boost discretionary tech spending by American companies, according to market experts. This trend is seen as favorable for Indian IT companies.

However, some analysts caution that IT companies may face challenges from tighter immigration controls, which could increase costs related to local hiring.

Global markets experienced a relief rally following the election results, as the reduced political uncertainty lifted investor sentiment. This rally was fueled by expectations of tax cuts and increased government spending. However, some analysts warned of potential protectionist policies under Trump’s administration.

The Indian stock market is expected to remain relatively volatile during Trump’s second presidential term, with factors such as protectionist trade policies and stricter immigration measures influencing market dynamics.

Trump’s “America First” and “Make America Great Again” slogans may pose challenges for the Indian IT sector, which relies heavily on U.S. H-1B visas. These policies could lead to increased costs and operational challenges for Indian IT firms, particularly in relation to their U.S. growth prospects. Indian pharmaceutical companies may also face increased scrutiny of their operations in the U.S. However, sectors such as manufacturing, energy, and defense are likely to benefit from Trump’s policies.