By Vineet Kumar 
The U.S. election results in 2024 have had a notable influence on the Indian stock market, creating volatility and some optimism. Market activity has been shaped by investor expectations surrounding U.S. trade and economic policies, which can significantly impact India’s exports and capital flows. The Sensex and Nifty indices rose due to global sentiment and potential trade stability if Kamala Harris, viewed as more likely to maintain existing trade policies, is elected. Alternatively, if Donald Trump wins, markets anticipate a more stringent trade and immigration measures, especially affecting sectors like IT and pharmaceuticals, which rely heavily on the U.S. for business.
Additionally, shifts in the dollar due to the election outcome have implications for the Indian rupee. A stronger dollar, likely under Trump, could cause capital outflows from emerging markets like India, potentially weakening the rupee. The Federal Reserve’s interest rate policies, influenced by the election result, could also impact global liquidity, thus affecting foreign investment in India.
Investors are advised to remain cautious and watchful as U.S. economic and foreign policies unfold in the coming weeks, which will shape mid- to long-term impacts on the Indian marke
ts.