Mumbai: Former US president Donald Trump’s return to the White House fuelled a market rally in India on Wednesday, propelled by technology stocks, riding hopes that his pro-business stance will spur spending and growth in the world’s largest economy.

Indian benchmark indices, which tracked global peers to rally by over 1% each amid trends pointing to Trump’s victory, could extend their rebound from recent lows on institutional short-covering and fresh buying in information technology counters, according to some analysts. This, however, may not last long, they said.

On Wednesday, though, the market rally added ₹7.75 trillion to investor wealth in India.

Experts say Trump is expected to cut corporate tax rates in his second term as US president next year, which could lead to increased spending, benefiting Indian technology services companies.

Besides, the US Federal Reserve seems set to cut interest rates for a second time since September, which is also expected to boost spending. The US Fed, which is meeting today to deliberate on its monetary policy, will announce its decision on 7 November.