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Sensex, Nifty end higher as stronger dollar lifts IT stocks
Photo Credit: Reuters

Indian shares ended with gains on Wednesday as a tightening U.S. presidential election boosted the dollar and helped buoy domestic IT shares, with Reliance Industries and pharma stocks also providing support.

Shortly after Democratic rival Joe Biden said he was confident of winning the contest once the votes are counted, President Donald Trump declared victory and said his lawyers would be taking his case to the U.S. Supreme Court, without specifying what they would claim.

The close race whipsawed global stock markets, while bonds and the dollar gained. 

The Indian rupee weakened by 0.45% to 74.7400 against the dollar by 0840 GMT, boosting shares of IT services firms that mostly earn their revenue in dollars but report it in rupees.

The NSE Nifty 50 index closed up 0.8% at 11,908.5, reversing from a drop earlier in the session in volatile trading. The S&P BSE Sensex ended 0.88% higher at 40,616.14.

"The next 24 hours are crucial and markets are waiting to see if Trump will follow through on his threat of legal action if there is a contested election," said Ajay Bodke, chief executive at Prabhudas Lilladher, a portfolio management service company in Mumbai.

Oil-to-telecoms conglomerate Reliance, India's most valuable company, recovered from two sessions of losses to close around 3.4% higher.

Drugmaker Sun Pharmaceutical Industries ended nearly 4% higher after reporting upbeat quarterly profit, boosting the Nifty pharma index, which firmed 2.2%.

State Bank of India rose 1.1% after India's biggest lender reported a rise in quarterly profit, helping the banking index reverse early losses and close 0.35% higher.

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