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Indian Stock Market to Rebound Post-Diwali? US Midterm Elections Fuel Expert Optimism.
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CNBC Awaaz•02-10-2026, 12:53
Indian Stock Market to Rebound Post-Diwali? US Midterm Elections Fuel Expert Optimism.
- •Despite ongoing market declines, experts anticipate a rebound in the Indian stock market around Diwali.
- •The optimism is linked to the US midterm elections scheduled for early November, rather than festive cheer.
- •Ashwini Shami of OmniScience Capital suggests a reverse chain of events post-midterms: lower crude prices, easing inflation, declining US Treasury yields, and increased foreign fund flows into Indian equities.
- •Shami believes a market re-rating is possible as focus shifts from current uncertainties to FY28 earnings and revenue growth.
- •The Indian stock market has seen its longest weekly losing streak in 25 years, but strong domestic capital flow persists.
Key Questions Answered
Experts like Ashwini Shami believe a reverse chain of events will unfold following the US midterm elections on November 3rd, including falling crude oil prices, easing inflation, lower US Treasury yields, and increased foreign fund flows.
The Nifty 50 and Sensex recorded declines for an eighth consecutive week due to heavy foreign investor selling, crude oil remaining around $100 per barrel, and high global bond yields.
Indian companies raised a record 2.43 lakh crore rupees through the equity market during the first half of FY 2026-27, showcasing strong domestic liquidity and active IPO markets despite secondary market weakness.
