Why India and Pakistan’s stock markets are rallying after the US midterms

India and Pakistan’s stock markets rose after the US midterm elections, as investors hoped that greater congressional checks on President Donald Trump could ease tensions with Iran and bring down oil prices. Lower energy costs would matter to both countries because they rely heavily on imported oil, but analysts say the gains do not yet signal a lasting economic recovery.

India’s Nifty 50 rose 0.84 per cent on Wednesday, while Pakistan’s KSE-100 slipped 0.14 per cent after climbing 3.13 per cent the day before. Global oil prices fell nearly 12 per cent between the elections and 10 November. India’s gains have also been supported by stronger corporate earnings and renewed foreign investor interest, while Pakistan’s rally has largely reflected hopes of easing US-Iran tensions; analysts say sustained investment and concrete diplomatic progress are still uncertain.