Indian markets, unlike their US counterpart, are falling after Trump’s win

The Indian stock market crashed on the day after the US election results showed a victory for Republican candidate and former President Donald Trump. In sharp contrast, the US markets rose after the poll results.
At 2 pm IST, the benchmark BSE Sensex fell to 79,583.40, which was down 794.73 points or 0.99% from the previous day’s close, while the Nifty fell to 24,215.80 at the same time, which is 268.25 points or 1.1% down from the previous close.
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In sharp contrast, the US stock market had surged. On November 7, The Nasdaq Composite Index rose by 544.30 points or 2.95% to $18,983.47, while the S&P 500 rose by 146.28 points or 2.53% to $5,929.04, the Dow Jones Industrial Average rose by a record 1,508.05 points or 3.57% to $43,729.93, and the Russell 2000 reached $2,392.92, climbing by 132.07 points or 5.84%.
However, on November 6, the Indian stock markets rallied.
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The Sensex closed at 80,378.13, which was up 901.50 points or 1.13% from the previous day’s close, while the Nifty rose to 24,484.05 at the same time, which is 270.75 points or 1.12% up from the previous close.
The Indian stock market fell due to a multitude of reasons including the expectations of the US Fed to cut rates by 25 basis points, the rupee falling to a low of 84.3587 to the dollar, and foreign investors selling equities worth ₹4,445.59 crore on Wednesday, according to a Moneycontrol report.
Meanwhile, the US markets rose because of an expected era of deregulation and other pro-business laws and policies, according to a CNN report.
Among the Nifty sectoral indices, Nifty Metal, Pharma, and Midsmall Healthcare fell the most by 2.75%, 1.75%, and 1.32% respectively.
Except for PSU banks, all sectors were in the red.
Among the Sensex companies, Tech Mahindra fell the most at 2.56%, followed by Tata Motors at 2.27%, Sun Pharma at 2.21% and IndusInd Bank at 2.19%.
Of the 30 Sensex companies, all were in the red except for SBI and TCS which rose 0.40% and 0.22% into the green respectively.
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The drop is “more of a technical pullback with some investors trying to use the rally in the previous session to book profits,” a Reuters report quoted Sunny Agrawal, an analyst at SBICaps Securities, as saying.
“The other, more deeper concern is over foreign flows. A rise in the U.S. Treasury yields in anticipation of a tariff hike on imports by Trump and the consequent rise in U.S. dollar index and inflation could hurt foreign inflows to India,” Agrawal said.