The US midterm results triggered broad rallies across South Asia as expectations of reduced friction with Iran pushed global oil prices down by nearly 12 per cent through Nov. 10. India's market momentum was further bolstered by solid July-to-September corporate earnings, attractive valuations, and returning foreign buyers. Meanwhile, Pakistan's performance hinged heavily on robust remittance inflows alongside geopolitical hopes. Analysts stress that durable recoveries will require sustained foreign investment in India and genuine diplomatic progress for Pakistan.
Key points
Democrats securing both chambers of the US Congress raised investor expectations of great…: Democrats securing both chambers of the US Congress raised investor expectations of greater constraints on President Donald Trump's trade and foreign policies.
Indian analysts warn that a durable market turnaround requires sustained foreign investme…: Indian analysts warn that a durable market turnaround requires sustained foreign investment spread across a wider range of sectors.
Experts monitoring Pakistan caution that volatile trading conditions persist and long-ter…: Experts monitoring Pakistan caution that volatile trading conditions persist and long-term gains depend heavily on tangible diplomatic advancements.
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analysis Asia
Why India and Pakistan's stock markets are rallying after the US midterms
Stock markets in India and Pakistan have rallied following the US midterms, buoyed by hopes of easing tensions with Iran and lower oil prices. But analysts say the gains are driven by different factors, and lasting economic relief remains uncertain.
BENGALURU/KARACHI: Investors in India and Pakistan are hoping that the outcome of the United States midterm elections held last week will ease geopolitical tensions and bring down oil prices, offering relief to two economies grappling with high energy costs.
Stock markets in both countries posted some of their biggest gains in months last week after Democrats won control of both chambers of the US Congress, raising hopes that President Donald Trump could face greater checks on his trade and foreign policies.
The rally extended into this week, with India's benchmark index Nifty 50 rising 0.84 per cent on Wednesday (Nov 11), while Pakistan's KSE-100 slipped 0.14 per cent after surging 3.13 per cent the previous day, amid easing geopolitical tensions, lower oil prices and strong remittance…
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