US Election's connection with Indian market, havoc for the first time in 20 years

Share Market News: November 4, 2024 will be a memorable day for Indian investors, but not for good memories. On the day of the US election, the Indian stock market witnessed such a massive decline, which had never happened in the last 20 years. Both the Sensex and the Nifty fell by more than 1%, causing huge losses to investors. This decline is the result of the uncertain results of the US election and global economic instability, which badly affected the Indian stock market.

Increasing volatility in the US election

Such uncertainty was never seen in the US elections from 2004 to 2020. George W. Bush's return to power in 2004 was considered certain, Barack Obama's victory in 2008 and 2012 was also expected, and Donald Trump's victory in 2016 was also not much of a surprise as the Republican Party was out of power for a long time. Even in the 2020 election, even though the contest was tough, Joe Biden's chances of winning were considered high. In contrast, the contest in 2024 is exceptionally tough and no one is able to predict who will win between Kamala Harris and Trump. This instability has created uncertainty not only in the US but also in global markets.

Big fall in Sensex and Nifty

On November 4, 2024, the Indian stock market recorded a historic decline. The Sensex closed at 78,782.24 points, down 941.88 points, while during the day it fell more than 1,500 points to reach 78,232.60 points. At the same time, the Nifty fell 309 points and closed at 23,995.35 points. During trading, the Nifty fell to 23,816.15 points. Due to this big shock, investors lost about Rs 6 lakh crore.

A jump was seen during the US election in 2020

At the time of the 2020 US election, there was a close contest between Donald Trump and Joe Biden, but the Indian stock market saw a jump at that time. On November 3, 2020, the Sensex closed at 40,261.13 points with a gain of 1.26%, and the Nifty also rose by 1.23% to 11,813.50 points. Investors got good earnings in 2020, but this time the situation is completely opposite.

Indication of Trump's possible victory in 2016

On the day of the 2016 election, there were indications of Donald Trump's victory, and this news also had a mild positive effect on the Indian stock market. On that day, the Sensex rose marginally by 0.48% and closed at 27,591.14 points. The Nifty also registered a gain of 0.55%.

Expectations of Obama's re-election in 2012

Barack Obama's popularity was at its peak in 2012, and his re-election was expected. In such a situation, the market also showed a very mild positive reaction. There was a slight increase of 0.30% in Sensex and 0.35% in Nifty.

Obama's first victory in 2008 and market boom

On 4 November 2008, when Obama was contesting elections for the first time, there were expectations of his victory. At that time, the market welcomed this news positively. Sensex rose by 2.84% and closed at 10,631.12 points. Nifty also saw a jump of 3.23%. Obama's arrival brought new energy to the market.

Expectations of George W. Bush's return in 2004

There was an expectation of George W. Bush's return to power in 2004, and the Indian stock market also showed its positive effect. The Sensex gained 0.88% and closed at 5754.76 points. The market gave positive signals in this election.

Conclusion

The US election of 2024 is different in many ways. The tough fight between Kamala Harris and Donald Trump and the atmosphere of instability is affecting the global markets. The impact of this election on the Indian stock market was historically large, which caused huge losses to investors. Now it remains to be seen how the Indian stock market reacts after the election results.