On November 5, 2024, global markets are displaying caution as investors await the outcome of the closely contested U.S. presidential elections. Nifty futures in India indicate a flat start, reflecting investor uncertainty following a recent selloff that pushed the index below the crucial 24,000 mark.
The Indian rupee is set to open at a record low of 84.14 against the U.S. dollar, surpassing its previous all-time low of 84.1225. This decline is attributed to foreign equity outflows and anxiety surrounding the U.S. elections. The Reserve Bank of India has been actively intervening to stabilize the currency, which has seen reduced volatility due to these efforts.
Market analysts suggest that a victory for Republican candidate Donald Trump could negatively impact the rupee and other Asian currencies, potentially leading to higher U.S. Treasury yields and a stronger dollar. Polls indicate a tight race between Trump and Vice President Kamala Harris, with initial voting trends expected to emerge on November 6 in Asia.
Key economic indicators include a dollar index at 103.90, Brent crude futures rising slightly to $75.20 per barrel, and a ten-year U.S. note yield at 4.3%. Recent data shows that foreign investors sold a net $516.5 million worth of Indian shares and $17.1 million in bonds on November 3, reflecting ongoing market volatility.