• The Indian stock market opened flat, with investors focused on the US election.
• Market experts note India's underperformance, with domestic issues weighing on markets.
• The US election has global implications, potentially impacting investor sentiment and market trends.
• Investors are advised to focus on long-term investment goals, not short-term market volatility.

The Indian stock market opened flat on Tuesday, with investors' attention focused on the closely-fought US election. The Sensex was trading at 78,714.02 after slipping 68.22 points or 0.09 per cent in early trade, while the Nifty was trading at 23,989.50 after slipping 5.85 points or 0.02 per cent.

Despite the slight dip, the market trend remained positive with 1,409 stocks trading in green on the National Stock Exchange (NSE), while 840 stocks were trading in red.

The Nifty Bank was at 51,123.70 after falling 91.55 points or 0.18 per cent. The Nifty Midcap 100 index was trading at 55,720.55 after slipping 64 points or 0.11 per cent. The Nifty Small cap 100 index was at 18,378.65 after slipping 46 points or 0.25 per cent.

Among the top losers in the Sensex pack were ITC, L&T, Infosys, HDFC Bank, Bharti Airtel, Reliance, Bajaj Finance, ITC and Power Grid. On the other hand, JSW Steel, Tata Steel, Sun Pharma, HCL Tech, Tata Motors and IndusInd Bank were the top gainers.

Market Performance and Expert Analysis

Market experts have noted that while all attention is focused on India -elections-ai-generated-content-warns-microsoft-867226?utm_source=Internal&utm_medium=article&utm_campaign=related class="internal-links" target=_blank>the outcome of the US presidential election, the more important domestic economic issue is not getting the importance it deserves. They pointed out that India's underperformance is striking: while S&P 500 is up 20.45 per cent year-to-date, Nifty is up by only 10.36 per cent YTD. This clearly indicates that domestic issues are weighing on markets.

In Asian markets, except for Seoul and Jakarta markets, the markets of Shanghai, Hong Kong, Tokyo and Bangkok were trading in green. The US stock markets, however, closed in the red on the previous trading day in the election week.

As voters go to the polling stations on Tuesday, they will have to decide between the top issues presented by Kamala Harris - abortion and character - or Donald Trump - immigration and the economy.

Foreign institutional investors (FIIs) sold equities worth Rs 4,329 crore on November 4, while domestic institutional investors bought equities worth Rs 2,936 crore on the same day. Experts have advised investors to opt for the safe strategy of remaining invested and accumulating stocks in segments which can weather the volatility.

US Election and Its Global Implications

The US election is not just a domestic affair but has global implications. The high prices are foremost in the minds of people, and the cost of food has increased by about 25 per cent since the end of 2020. Harris claims a victory over inflation asserting that the rate has been brought down to 2.4 per cent.

But since the prices haven't come down, people compare current prices to those in 2020. Trump points to the economic performance of his administration before the Covid pandemic and the lower prices during his term. Trump promises to bring back manufacturing and jobs to the US, while Harris points to the programmes like making silicon chips already introduced by her and Biden for boosting manufacturing and jobs.

The US election is a significant event that has the potential to impact global markets, including India. The outcome of the election could influence investor sentiment and market trends in the short term. However, in the long run, market performance is likely to be driven by fundamental factors such as corporate earnings, economic growth, and policy decisions. Therefore, investors are advised to stay focused on their long-term investment goals and not get swayed by short-term market volatility.