Subscribe to enjoy similar stories. MUMBAI : Indian markets are poised to rebound from recent lows, with Donald Trump projected to win the 2024 US elections. The reason for the rebound will be short covering as institutional investors and proprietary traders have hedged their portfolios or taken naked shorts, according to analysts.
Early counting gives Trump a lead with 172 electoral votes against 81 for Kamala Harris. A total of 270 votes are needed for a win. This resulted in Indian markets trading up three-tenths of a per cent after the opening at 9:15am.
The Nifty traded up 62 points at 24,275.60, while the Sensex gained 227 points to trade up at 79,703 at the opening. "A Trump win could boost sentiment in the very near term, but that won't be a long-lasting move, at best a week or 10 days before fundamentals take over," said ace investor Shankar Sharma. The benchmark Nifty and the Sensex have both headed toward correction territory, which is defined as a 10% fall below highs.
The Nifty, as of Tuesday, settled at 24,213.3, 7.85% below its record of 26,277.35 on 27 September. The Sensex closed at 79,476.63 on Tuesday, 7.6% below its all-time high of 85,978.25 on 27 September. The wealth erosion led by FPI selling since last month's record high has been to the tune of ₹33 trillion as of Tuesday.
The market cap of 5,525 firms on Tuesday stood at ₹446.10 trillion, down from ₹479.10 trillion after FIIs sold shares worth over ₹1.1 trillion in the cash market last month. This month, too, they remain net sellers of ₹8,905 crore through 4 November. While DIIs have matched their selling, most FPIs and prop traders are net short on index futures, too.
Read more on livemint.com