US stocks are experiencing a significant rally after President Donald Trump's party lost its sole control of Washington in the midterm elections. According to Associated Press, the Dow Jones Industrial Average surged 1,519 points, or 2.9%, as of 2:06 p.m. Eastern time, while the S&P 500 jumped 1.8% and the Nasdaq composite rose 1.9%. Stocks generally do well in the months following any midterm US election, regardless of who wins, and Wall Street may have gotten a preferred political scenario as Democrats are set to take control of both the Senate and the House of Representatives. Wall Street generally prefers split control of Washington because it lessens the risk of transformative changes to the economy, with Brian Jacobsen, chief economic strategist at Annex Wealth Management, noting that "Earnings trump elections."
The Nifty Financial Services index surged nearly 3% intraday, while Bank Nifty gained 2.2%, outperforming the broader market as investors cheered Democrats' victory in the US midterm elections. According to Live Mint, SBI Cards led the gains, rising over 6%, with Shriram Finance, Cholamandalam Investment and Finance Company, Bajaj Finance and HDFC AMC advancing over 5% each. Within the banking pack, AU Small Finance Bank climbed over 4%, while IndusInd Bank, Axis Bank, IDFC First Bank and ICICI Bank advanced between 3% and 4% each. The strong performance across private banks, public sector banks, NBFCs, insurance companies and asset management businesses highlighted the breadth of the financial sector rally.
Nifty IT climbed over 3% on November 5, leading the sectoral rally as investors celebrated the Democrats' landslide victory in the US midterm elections. According to ET Now, LTIMindtree surged the most among IT counters, jumping 3.7% to a high of ₹4,358.70 on the NSE, while Infosys gained 2.88%, Tech Mahindra rose 2.5%, Mphasis advanced 2.25%, and TCS climbed 1.9%. The top five IT gainers included LTIMindtree, Infosys, Tech Mahindra, Mphasis, and Tata Consultancy Services. The election results are expected to provide significant relief for the IT and tech sector, as reported by Live Mint, with Seema Srivastava, Senior Research Analyst at SMC Global Securities, explaining that a Democratic-led Congress is expected to push back against aggressive restrictions on skilled immigration and heavy H-1B visa fees.
Data centre stocks experienced significant declines following the Democrats' victory in the US midterm elections, particularly affecting companies with operations in key states. Nebius Group shares fell as much as 5% after Democrats won the Texas governor's race, even though the company has not announced any data centre projects in the state. Democrat Gina Hinojosa defeated Governor Greg Abbott after promising an immediate pause on new data centre projects until lawmakers introduce stronger safeguards. The concern is significant because Texas accounts for an estimated 27% of planned US data centre capacity, according to Wells Fargo. CoreWeave fell 7% as investors responded to the broader industry concerns about tighter regulations. Reuters reported that some solar stocks gained as much as 10%, with the Invesco Solar ETF also rising 5%, as the election results shook up the energy outlook.
Global markets, including India's Sensex, Nifty, Bank Nifty and other broad market indices, are experiencing a significant rally following the US Midterm Election results. According to reports from Live Mint, by 10:10 AM on Thursday, the BSE Sensex is up close to 1700 points, or more than 2%, the Nifty 50 index is up over 400 points, or 1.75%, and the Bank Nifty index is up by around 1100 points, or 2%. Major US stock futures initially fell on the news that broke in the early hours of Wednesday morning in Asia, but later reversed course to turn positive, with futures rising 1.75% while S&P 500 futures rose 0.8%. US Treasuries rallied, sending the benchmark 10-year yield down to 4.91%, while safe havens such as gold benefited, rising by about 3%. This rally is attributed to smart money shifting from the US bond market to other assets such as equities, gold, and silver, following weakness in the US dollar.
Market experts have identified 10 stocks to buy following the US Midterm Election Results 2026, as reported by Live Mint. The recommended stocks include Reliance Industries, TCS, Wipro, Infosys, Birlasoft, HPCL, BPCL, IOCL, and GAIL India. Avinash Gorakshkar specifically recommends oil and gas marketing companies like HPCL, IOCL, BPCL and GAIL India after the sharp rise in margins and profitability. The recommendations are based on expectations of relief from H-1B visa restrictions, easing of Middle East tensions, and potential relief from Russian sanctions. Foreign investors also infused around ₹17,235 crore into Indian equities in just three trading sessions of November, reflecting a return of overseas institutional buying. Mark Haefele, chief investment officer at UBS Global Wealth Management, advises investors to actively look at reducing single-name concentration, rebalancing oversized technology exposure, and tilting towards quality companies across the AI value chain. He sees attractive income and diversification potential in high-quality bonds, particularly short- to medium-term maturities, while maintaining a pro-risk stance in portfolios.
