How Will The Indian Stock Market React To The U.S. Elections Tomorrow?

How will the outcome of the U.S. Presidential Election impact Indian markets? With Donald Trump and Kamala Harris in the race, the results are set to influence global investor sentiment and market stability worldwide. Business Today TV presents insights from two leading experts—Gaurav Dua, Head of Capital Market Strategy at Sharekhan, and G Chokkalingam, Founder and MD of Equinomics Research—who weigh in on how Indian markets and sectors may react under each scenario. Gaurav Dua suggests that a Republican victory could lead to a brief celebratory rally. However, the initial gains could quickly reverse as concerns over heightened tariffs, inflation, and increased 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, under these circumstances, a short-term rally might be more of an opportunity for profit-taking rather than buying. On the other hand, G Chokkalingam is confident that while the election results may cause market shifts over a few days, they won’t drastically impact Indian markets in the long run. He highlights the deep economic ties between India and the U.S., underscoring that America’s dependence on Indian exports, particularly in goods and IT services, forms a “natural alliance” that won’t easily be disrupted. Therefore, he suggests that any temporary market dip due to election reactions could present a strategic opportunity to invest in quality small- and mid-cap stocks for long-term gains. G Chokkalingam further suggests that regardless of whether Trump or Harris wins, India’s importance as a trading partner to the U.S. may lessen the likelihood of any long-term downturn. Will Indian markets rise or fall based on U.S. election results? Which sectors will likely weather potential volatility best? Tune in as Gaurav Dua and G Chokkalingam provide essential insights and recommendations for navigating the market amid U.S. political shifts.