Stock market today: How should investors place bets amid US election results 2024? Experts weigh in

Stock market today: Domestic equity benchmarks Sensex and Nifty 50 staged a spirited recovery on value buying from their early losses in the previous session amid firm trends in global equities ahead of the tightly fought US presidential elections 2024. Late buying in banking, metal, steel, and oil and gas shares helped the frontline indices reverse course in the final two hours aiding a broad market recovery after falling 0.6 per cent each earlier during the session. 

Notably, the Indian stock market recorded its worst intraday performance in a month on November 5, 2024. Trading in a range with a negative bias in the first half of the session, investors turned cautious due to the high-stakes US election results. Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls, leading to a deadlocked situation.

Stock market today: Sensex, Nifty current levels

Slowing corporate earnings and record monthly foreign outflows have weighed on domestic equities over the last five weeks, with the Nifty 50 dropping about eight per cent from record highs hit on September 27. On Tuesday, financials rose about two per cent, with top private lender HDFC Bank, the heaviest stock in the Nifty and Sensex benchmarks, advancing 2.6 per cent.

Bouncing back from Monday’s sharp fall, the 30-share BSE Sensex jumped 694.39 points or 0.88 per cent to settle at 79,476.63. During the day, it soared 740.89 points or 0.94 per cent to 79,523.13. The NSE Nifty rose 217.95 points or 0.91 per cent to settle at 24,213.30 as 39 of its constituents advanced and 11 declined.

Sensex hit a low of 78,296.70 while Nifty touched 23,842.75. The robust rally in the banking and metal sectors propelled the Nifty 50 to close the trading session by 0.91 per cent at 24,213. After hitting an intraday low of 23,842, the index rebounded by 372 points, reflecting a recovery of 1.55 per cent.

In terms of individual stocks, 39 constituents of the Nifty 50 closed the session in positive territory. JSW Steel topped the list with a gain of 4.7 per cent, followed by Bajaj Auto, which rose by 3.7 per cent. Other notable performers included Tata Steel, Hindalco Industries, Axis Bank ros over two per cent.

The metals index rose 2.8 per cent, leading sectoral gains, aided by a subdued US dollar and on expectations of demand recovery in top consumer China. Improving Chinese demand is a positive for metal prices and, in turn, for global metal firms. 

The broader, more domestically focused mid- and small-cap stocks also closed higher but lagged behind the benchmark indices. The Nifty Midcap 100 index recorded a gain of 0.59 per cent, finishing at 56,115, while the Nifty Smallcap 100 index ended the session at 18,503, reflecting an increase of 0.43 per cent.

Analysts say a Trump win could lead to lower corporate tax rates in the US, which is expected to boost spending and, in turn, benefit several equity sectors in India, according to analysts. A Harris victory, meanwhile, is seen as a sign of policy continuity, a neutral-to-mildly-positive outcome for Indian stocks.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.