Stock Market LIVE Updates : "The US economy faces a potential 'soft landing' scenario, with inflation easing without leading to a recession, while a 'No Landing' scenario—characterised by steady growth and sustained inflation between 2.5 per cent and 3 per cent—is less likely, as it would require significant increases in productivity and labor force growth.
Regarding the election's impact on markets, investors anticipate policy constraints to ease after the election, regardless of the winner. Trump’s focus is on tariffs, while Harris emphasises industrial policy; however, Congress will primarily shape future policy direction.
Turning to India’s equity market outlook, the Nifty 50 index has surged over 200 per cent since March 2020. However, recent volatility, weak Q2 earnings, and economic slowdown due to weather disruptions have tempered optimism.
Strong domestic investor participation supports market liquidity, although foreign inflows have decreased due to election uncertainties. JP Morgan projects India’s GDP to grow by 6.5 per cent in 2024, potentially doubling to $7 trillion by 2030 and making it the third-largest economy by 2027, with key support levels for the Nifty 50 at 24,300 and 23,200.
In the commodities space, gold is gaining momentum due to falling interest rates, geopolitical tensions, and a weakening dollar. Conflicts in Ukraine, the Middle East, and the upcoming US election have enhanced gold's appeal as a safe haven.
As the Federal Reserve signals possible rate cuts, gold benefits from its inverse relationship with the dollar. Lastly, the recent 30-year bond auction saw a coverage ratio of 2.50, indicating robust demand. With expected Fed rate cuts, higher-yield bonds offer capital gains, with long-term Treasuries particularly benefiting due to their sensitivity to interest rate changes."
Views By: Justin Khoo, Senior Market Analyst APAC, VT Markets
 "Market Close Highlights: Sensex adds 900pts; Nifty ends near 24,450; IT stocks soar on Trump victory")
