IGI Logo

Below the Quote on Market Outlook on domestic factors driving Indian equity market amid US election outcome by Sunil Damania, Chief Investment Officer, MojoPMS

"Following the U.S. presidential election, we've observed a divergence between the U.S. and Indian stock markets. While U.S. markets may experience gains, the Indian market currently faces challenges, including high inflation, slowing urban consumption, and significant foreign portfolio investor (FPI) selling. In the past 35 days, FPIs have sold over Rs 1 lakh crore, an unprecedented level of outflow that has intensified pressure on Indian equity prices.

In our view, the recent U.S. election outcome will likely have minimal immediate effect on Indian market sentiment. With the newly elected president not assuming office until January 2025, the Indian market's near-term direction will be more influenced by domestic factors, such as the Maharashtra assembly election results, corporate earnings commentaries, and retail investor behavior in response to the October and early November downturn.

Historically, the Indian market has shown resilience and an upward trajectory regardless of changes in U.S. leadership. We advise investors to concentrate on India's strong fundamentals rather than speculating on U.S. policy changes. The U.S.-India strategic relationship, particularly in counterbalancing China, is likely to remain stable, which we believe will mitigate any substantial negative impact on the Indian economy."
 

Above views are of the author and not of the website kindly read disclaimer