As the counting for the historic 2024 US Presidential election is underway and there is a high likelihood of Donald Trump taking over, with him leading in more states, the Indian markets are trading strongly with the Sensex swiftly breaching 80,000 levels and Nifty scaling over 24,400 levels.

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Sectorally, amid across-the-board buying, the IT pack emerged as the top performer with gains of up to 3.5 per cent at the day's high. Notably, the tech stocks-heavy Nasdaq Composite index shot up 259.2 points, or 1.4 per cent, to 18,439.2 in the overnight trade.

From the pack, top gainers included stocks like Persistent Systems, LTIMindtree, TCS, Infosys, HCL Technologies, Coforge, Tech Mahindra and L&T Technology Services gaining between 3-5 per cent.

Amid such sharp gains, stocks like HCL Technologies, Wipro, and Persistent Systems are trading just 2-3 per cent away from their 52-week high price, respectively.

There is a belief that if Donald Trump wins the US presidential race, the corporate tax structure will be tweaked lower, leaving corporates with more budgetary outlay. This enhanced budget will  then augur well for Indian IT companies who have been facing the wrath of lower spending across verticals.

Zee Business Managing Editor also pointed that a clear outcome of the US election in early trends may give a clear direction to Dalal Street, with markets anticipating higher chances of a Trump win in the historic election.  

Also, he expected a strong breakout at the 24,500 mark on the Nifty50 with spaces like PSUs, metals and IT enjoying rapid buying. 

Outlook for IT stocks 

Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers said, "the Trump coming back is already priced in the sector and since the outcome is also looking similar we are not expecting much downside from here merely due to results.

Some short covering may happen as event gets over. However, we need to wait for new administration to take over and see their policies. Overall, worst is behind and we could see some improvement for the sector in H2FY25, he adeed. 

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