Indian Stock Market: 8 Key Changes Ahead of US Election Results

The Indian stock market is expected to see volatility today as Sensex and Nifty 50 respond to mixed global signals ahead of the US presidential election results for 2024. Asian markets started higher, and the US markets surged overnight as votes were cast in the close race between Kamala Harris and Donald Trump.

On Tuesday, Indian markets rebounded strongly, led by gains in metals and banking stocks. The Sensex climbed 694.39 points (0.88%) to 79,476.63, while Nifty 50 rose 217.95 points (0.91%) to 24,213.30. Optimism in Asian and European markets before the election boosted local investor confidence, although skepticism remains about future Fed rate cuts and corporate earnings growth, according to Prashanth Tapse, Senior VP at Mehta Equities Ltd.

Key Global Market Influences for Sensex Today:

1. Asian Markets

• Asian markets rose on Wednesday, mirroring Wall Street’s rally ahead of the US election outcome.
• Japan’s Nikkei 225 gained 0.7%, while the Topix index was up 0.4%.
• South Korea’s Kospi rose 0.2%, and the Kosdaq added 0.7%.
• Hong Kong’s Hang Seng index futures pointed to a weaker opening.

2. Gift Nifty Today

• Gift Nifty traded around 24,255, roughly 40 points lower than Nifty futures’ previous close, signaling a possible lower start for the Indian market.

3. Wall Street

• The US stock market closed higher on Tuesday amid election day anticipation.
• The Dow Jones rose 427.28 points (1.02%) to 42,221.88, S&P 500 climbed 70.07 points (1.23%) to 5,782.76, and Nasdaq surged 259.19 points (1.43%) to 18,439.17.
• Notably, Nvidia’s stock rose 2.9% to $139.93, making it the world’s highest-valued company with a market cap of $3.43 trillion, overtaking Apple.

4. US Election Results 2024

• Americans voted on Tuesday to elect their next president, with Kamala Harris running against Donald Trump.
• As of the latest count, Trump is leading with 53.1% of the vote, while Harris has 45.8%.

5. US Services PMI

• The US services sector grew faster than expected in October, reaching a two-year high.
• The ISM non-manufacturing PMI rose to 56.0 from 54.9, above the predicted 53.8, indicating strong employment growth.

6. Gold Prices

• Gold remained steady as investors await the US election results and the Fed’s next meeting.
• Spot gold dipped 0.2% to $2,738.89 per ounce, with US gold futures down 0.1% to $2,747.80.

7. Dollar Strength

• The US dollar index increased by 0.6% to 103.98, while the euro dropped 0.6% to $1.0867.
• The dollar rose to 152.61 yen and gained 0.3% against the offshore yuan to 7.1227.

8. Treasury Yields

• US Treasury yields edged higher as investors anticipate election results.
• The 10-year Treasury yield increased to 4.34%, nearing a recent high of 4.388%, while two-year yields rose to 4.245%.

These international and domestic cues will shape the Indian stock market today, with key levels to watch and potential opportunities based on the global and election-driven sentiment shifts.