Nifty, Sensex Soar At Pre-Open Signalling Mega Start After Democratic Win In US 

Mumbai, November 5: Indian shares surge at pre open signalling a strong open as a sharp correction in crude oil prices and sustained foreign fund inflows lift sentiment.  

Investors are betting that the Democrats’ sweeping victory in the US midterm elections could intensify pressure on President Donald Trump to bring the US-Israeli war on Iran to an end, easing geopolitical risks and energy market uncertainty. 

Nifty 50 rose 2.1% and Sensex climbed 2.2% at pre open.  

Foreign portfolio investors (FPIs) bought domestic equities worth Rs 7,284 crore on Wednesday, marking their fourth consecutive session of net purchases, according to provisional exchange data. The sustained buying offers early signs of a possible turnaround in foreign investor sentiment after a prolonged period of heavy outflows that weighed on Indian markets this year.  

The Democrats’ electoral gains are also being viewed as a setback for Trump’s policy agenda, including his aggressive tariff measures and military intervention in the Middle East, both of which have contributed to global uncertainty and India’s relative market underperformance.  

Domestic benchmarks have staged a notable recovery, with the Nifty 50 and BSE Sensex advancing 5.6% over the past five sessions, marking their longest winning streak in nearly five months. The rebound has been supported by renewed foreign buying, softer crude prices and encouraging corporate earnings, although investors will watch whether these factors can sustain the recovery. 

Asian Markets 

Asian markets declined in early trade, with Japan’s Nikkei 225 falling 0.4% and South Korea’s Kospi plunging 3.2%, while Taiwan’s benchmark Taiex declined 1.6%. Technology and semiconductor stocks bore the brunt of selling pressure as investors reassessed the outlook for data centre expansion following the Democrats’ electoral gains in key US states. 

The weakness in Asian technology shares came despite a broader improvement in global risk appetite. Investors are concerned that the Democratic victory could lead to tighter scrutiny of data centre construction and AI infrastructure spending, potentially slowing demand for chips and related equipment. European shares, meanwhile, climbed to a two-month high. 

US Markets 

On Wall Street, equities rallied sharply on Wednesday after Democrats seized control of both the Senate and the House of Representatives, raising expectations of greater political gridlock in Washington and potentially limiting the Trump administration’s policy agenda. 

The Dow Jones Industrial Average surged 1,569.40 points, or 3%, to close at 53,356.12. The S&P 500 gained 119.70 points, or 1.6%, to settle at 7,688.62, while the Nasdaq Composite advanced 364.50 points, or 1.4%, to 25,736.51. 

Consumer discretionary stocks led the broader S&P 500 sectoral rally, gaining 4.3%, while energy stocks declined 4.8%. Microsoft, Amazon and Alphabet were among the major technology gainers, even as data centre operators and semiconductor stocks faced selling pressure. 

Crude Oil Prices 

Crude oil prices remained under pressure, with Brent futures falling nearly 9% overnight to below $100 per barrel, amid expectations that the Democrats’ victory could increase pressure on US President Donald Trump to bring the conflict with Iran to an end. 

Brent was trading at around $94 per barrel in Asian trade, extending its decline to nearly 20% this week. If sustained through Friday, the weekly fall would be the steepest in more than six years. Lower oil prices also helped push bond yields down and weakened the US dollar, providing additional support to global equities. 

Source

• Exchanges