How will the Indian stock market react to the US elections tomorrow?

How will the US presidential election results impact Indian markets? With Donald Trump and Kamala Harris in the race, the results should impact global investor sentiment and the stability of markets around the world. Business Today brings to you the views of two leading experts – Gaurav Dua, Head of Capital Markets Strategy at Sharekhan, and J Chokkalingam, Founder and Director, Equinomics Research – as they weigh in on how Indian markets and sectors might react in each scenario. Gaurav Dua suggests a Republican victory could lead to a short holiday rally. However, the initial gains could quickly reverse as concerns about rising tariffs, inflation and rising U.S. bond yields weigh on emerging markets including India. This, in turn, could strengthen the dollar and push investors towards safer assets, potentially leading to selling pressure on Indian equities. Gaurav Dua advises that in these circumstances, a short-term rally may be more of a profit-taking opportunity than a buying opportunity. On the other hand, J. Chokkalingam is confident that while the election results may cause market shifts within a few days, they will not have a drastic impact on Indian markets in the long run. He highlights the deep economic ties between India and the US, emphasizing that America’s dependence on Indian exports, especially in goods and IT services, forms a “natural alliance” that is not easily broken. Therefore, he suggests that any temporary market decline due to election reactions could present a strategic opportunity to invest in quality small- and mid-cap stocks for long-term returns. J. Chokkalingam further suggests that whether Trump or Harris win, India’s importance as a US trading partner could reduce the likelihood of any long-term economic downturn. Will Indian markets rise or fall depending on the US election results? Which sectors are most likely to weather potential volatility best? Tune in as Gaurav Dua and J. Chokkalingam provide essential information and guidance on navigating the market amid political shifts in the United States.