Trump Tech Talk Teases Stock Markets with Gains
Donald Trump takes oath as 47th President of the US. Image credit Video grab
Tech Stocks Lead Bulls Back in Stock Market Amid Volatility
By S Jha
New Delhi, January 22: Nifty recovered almost 200 points from day’s low on Wednesday. The stock markets battled sharp volatility amid looming trade war following US President Donald Trump’s threat to impose tariffs against several countries.
Broader markets went under the hammer in early trades on Wednesday. Nifty finally broke the 23000 psychological level also. Sensex too had gone under 76000 levels.
But Trump’s tech plan lifted the sentiments for select stocks. Even while the indices ended with handsome gains, broader markets stayed in the grip of bears.
Investors reported their portfolios taking cuts of even five per cent on Wednesday. The small caps and midcaps continue to be hammered by bears. Investors reported sharp losses in their portfolios even while the indices ended in the green.
Trump on the second day in the office announced plan to pump billions of dollars in private sector investment to build artificial intelligence (AI) infrastructure in the US, reported Anadolu English.
The agency quoted Trump, saying: “We’re starting off with tremendous investment coming into our country at levels that nobody’s really ever seen before.” As per the plan of Trump, OpenAI, SoftBank and Oracle will form a joint venture called Stargate.
The US President said that “a massive group of talent and money will come together for the formation of Stargate”. He claimed that the plan will entail an investment of $500 billion in AI infrastructure.
“This will create over 100,000 American jobs. I will get the project going through emergency order,” Trump said.
The impact of Trump announcement brough cheers to the bulls riding the tech stocks. The IT index rose by 1.88 per cent. The tech index also posted hefty
The gains in the tech stocks were led by Infosys sharply rising. The IT behemoth, already mauled by bears following dismal quarterly results, gained over three per cent.
Wipro and TCS also gained three pec cent each during the day. The strong momentum in the IT stocks lifted the broader markets.
The realty sector was hammered on Wednesday. The realty index went down by over 4.5 per cent. Several of the contract electronic manufacturers have been smashed by bears in Trump-led rout in the Indian stock markets.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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