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.
India and Pakistan's stock markets have seen significant gains following the US midterm elections, with investors hoping for less geopolitical tension and cheaper oil. The rally has been driven by different factors in each country. Indian markets, buoyed by stronger corporate earnings and renewed interest from foreign investors, are up 0.84% as of November 11, while Pakistan's KSE-100 index surged 3.13% the previous day before easing to a 0.14% gain.
Analysts caution that lasting economic relief will depend on whether oil prices remain low and diplomatic efforts lead to progress. In India, the rally comes after a prolonged sell-off due to slowing economic growth and weak investor confidence. For Pakistan, the market rally is primarily fueled by hopes of easing tensions between the US and Iran.
While a sustained recovery remains uncertain, lower oil prices and improved economic indicators could provide a short-term boost to both markets.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
