Trump or Harris: Stock market's reaction to the US election outcome may differ

Among the factors that have led to the stock market selloff on November 4 are reports that US Presidential election could be a tighter race than previously thought. A most recent poll by the US website Des Moines Register showed that Democrat Kamala Harris was leading in Iowa — traditionally a strong bastion for Donald Trump, who had won each of his previous elections in the state. Other surveys too showed both candidates in a tighter race, with voters narrowly divided across key swing states.

The downtrend seen in the stocks has been sharp, taking Nifty as well as the broader markets sharply lower, as equities look for clearer signs ahead of the US election.

The selloff seen in the stock market on November 4 may continue for a 'few more days' till the US election verdict is out of the way, and one may see a bounce back subsequently but the degree may vary based on the outcome, Deepak Jasani of HDFC Securities said in a conversation with CNBC-TV18.

Devina Mehra of First Global told the channel the India impact of the US election will be hard to predict right now, as the full impact on America itself is not clear as yet. Devina highlighted that Trump's policies turned out to be pro-business after he'd won the tightly contested election in 2016 against Hillary Clinton. One needs to assess how the equity markets digest the US election verdict after the initial reaction, she added.