US mid-term polls LIVE: Iranian officials say results show voters have rejected Trump's war

Investor focus will shift to Trump’s move on West Asia, global trade post US midterms: Analysts

The results of the US midterm elections are likely to influence Indian markets primarily through changes in global financial conditions, trade policy expectations and geopolitical developments, analysts said.

Investors' focus will shift to the US administration's next course of action on West Asia, as any further escalation or diplomatic progress could significantly influence crude oil prices and global market sentiment in the near term, according to an expert.

In a stinging rebuke to President Donald Trump, American voters on Tuesday gave the opposition Democratic Party control of the US Congress and flipped key gubernatorial posts in widely watched elections that will have consequences far beyond America.

Trump’s Republican Party faced stunning defeats in its strongholds such as Texas, Georgia and Iowa, where it lost the governors’ posts to the Democrats. The grand old party also faced a drubbing in Senate races in Texas, Maine, South Carolina, North Carolina, Kansas, Iowa – where Trump campaigned with a simple message urging voters to pretend that he was on the ballot.

The widespread losses were attributed to anger against Trump’s policies, including the war on Iran, which have led to increased cost of living and high diesel prices.

"The US midterm election outcome, with Democrats securing control of both the House of Representatives and the Senate, is likely to influence Indian markets primarily through changes in global financial conditions, trade policy expectations and geopolitical developments. The result has increased the possibility of legislative gridlock in Washington, potentially limiting the implementation of President Donald Trump's domestic policy agenda and increasing scrutiny of existing tariff and immigration policies.

“The immediate market reaction has been supportive for emerging markets, with the US dollar and Treasury yields declining, offering some relief to the Indian rupee and improving foreign investor sentiment," Gaurav Garg, Head - Research, Lemonn, said.

However, the impact on Indian equities will depend more on how these developments translate into actual policy changes rather than the election outcome alone, he said.

“From a sectoral perspective, IT companies will remain sensitive to changes in US technology spending, H-1B visa regulations and corporate outsourcing budgets, while any improvement in US business confidence could support demand for Indian software services. Pharmaceuticals could benefit if trade and regulatory uncertainties ease, although US pricing and regulatory policies remain important risks,” Garg added.

Stock markets rallied for the fifth straight day on Wednesday amid foreign fund inflows and easing crude oil prices. The 30-share BSE Sensex rose 383.55 points, or 0.50 per cent, to settle at 77,301.40, its highest close in more than two months. The 50-share NSE Nifty was up 149.75 points, or 0.63 per cent, to end at 23,960.60.

Oil marketing companies, aviation, paints and chemicals may gain if geopolitical tensions moderate and crude oil prices further decline, resulting in reduction in input costs and India's import burden, he said.

Conversely, upstream oil and gas companies could face pressure from lower crude prices, Garg said, adding that financial stocks may also respond to movements in US Treasury yields and foreign portfolio flows.

"Overall, the election outcome is a potential short-term positive for Indian market sentiment, but sectoral performance will remain differentiated, with currency movements, crude oil prices, US trade policies and domestic corporate earnings determining the sustainability of the market reaction," he said.

In the last five trading sessions, the Sensex has jumped 4,055.37 points, or 5.53 per cent, and the Nifty surged 1,261.75 points, or 5.55 per cent.

"Post the US midterm elections, investor focus will shift to the US administration’s next course of action on West Asia, as any further escalation or diplomatic progress could significantly influence crude oil prices and global market sentiment in the near term," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

"On the global front, markets remained mixed as investors assessed the implications of the US midterm election outcome, particularly for AI-related investments, global trade and geopolitical developments," Ajit Mishra, SVP – research, Religare Broking, said.

V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said the Democrats’ win in both the House of Representatives and the Senate will significantly reduce the powers of the President to act as he wishes.

"A likely positive fallout is that the Trump Administration might expedite the US-India trade deal to show positive results in the face of this setback. Also, since the excessive price of diesel is believed to have contributed significantly to the Republican loss, the President might try to reach a deal with Iran through Qatar mediation. The consequent possible decline in crude prices will be beneficial for India. Brent has already declined from last week’s high of USD 118 to USD 102 now," Vijayakumar added.

IT stocks were the laggards on Wednesday's trade, with TCS, Infosys, HCL Tech and Tech Mahindra ending lower.

"The Nifty IT declined 1.5 per cent, tracking a broader sell-off in Asian technology stocks amid concerns over rising artificial intelligence spending and potential regulatory scrutiny following the US election outcome," Khemka said. PTI 

Referendum on Trump, what happens 2 yrs from now will be interesting: Experts on US midterms

As American voters gave the opposition Democratic Party control of the US Congress and flipped key gubernatorial posts in widely watched elections, some international affairs experts dubbed the results as a "referendum" on President Donald Trump and hoped it will prompt him to relook at his policies.

Others observed that it will be more "interesting to watch" what happens two years from now in the next presidential election.

Trump's Republican Party faced stunning defeats in its strongholds such as Texas, Georgia and Iowa, where it lost the governors' posts to the Democrats. The Grand Old Party (GOP) also faced a drubbing in Senate races in Texas, Maine, South Carolina, North Carolina, Kansas, and Iowa - where Trump campaigned with a simple message urging voters to pretend that he was on the ballot.

As results poured in for the US midterm elections, domain experts from New Delhi to Washington weighed in with their viewpoints in an attempt to decode both its import for global politics as well as its plausible impact on India-US ties.

Former Indian diplomat K P Fabian said, "Midterms are often a referendum on the incumbent presidents."

"By and large, it (midterm election) is a referendum on the incumbent president. In the case of Trump, it has been a referendum on him more than has been the case usually," Fabian told PTI.

Fabian said the outcome of the elections sends out a clear message from Americans that they "want a change in his behaviour".

He said the current US president could adopt a more "pragmatic approach" to protect his legacy during the remaining two years of his presidential term.

Many other experts expressed similar viewpoints.

The widespread losses were attributed to anger against Trump's policies, including the war on Iran, which have allegedly led to increased cost of living and high diesel prices.

The US has been embroiled in a conflict with Iran since joint US-Israeli strikes on Iran on February 28 which has led to global ramifications.

The midterm elections are being viewed as President Trump's first real test of his presidency in a term marred by wars, tariffs and pressure from the domestic front on rising gas prices and inflation.

The results will have consequences far beyond America.

In media interviews, Trump conceded defeat in the elections, known as midterms because they are held in the middle of the president's 4-year term, and said he was ready to work with the Democrats.

"My message is, congratulations to the Democrats, and I look forward to working with you for the good of our country," he told CBS News.

Fabian also commented on the India-US relationship in Trump's presidency, and said India counts as a rising power and as a civilisation state, and Trump's approach towards India had been a "big mistake".

He argued that Washington needed to recognise India's growing economic and geopolitical significance and its role as a leader of the Global South.

This midterm has also put the India-American community in the US in sharp focus, both the people who fought the elections as well as members of this community spread across the country.

Trump's favourite Indian-American Vivek Ramaswamy was defeated in Ohio's gubernatorial race by Democrat Amy Acton after a bitter campaign that even left the Republican Party divided.

Democratic lawmaker Ami Bera, 61, has won re-election to the US House of Representatives from California's 3rd Congressional District, defeating Republican Robb Tucker. He was born in Los Angeles to Gujarati immigrant parents.

Democratic Congresswoman Pramila Jayapal, who was born in Chennai in 1965, has won re-election from Washington's 7th Congressional District, which includes most of Seattle and surrounding areas.

Democrat Pia Dandiya has won election to the US House of Representatives from Florida's 22nd Congressional District, defeating Republican Casey Askar.

Avinash Gupta, an Indian-American community leader and former president of the Federation of Indian Associations (FIA), while interacting with PTI Videos in Washington, said, "I am in this country since 1996, and I have seen four decades of social and political scenes. We are witnessing a historic midterm election, which usually always goes against the incumbents."

Whether it will affect the Indo-US relationship or whether it will affect the Indian-American community in the US will have to be seen, he said.

"I don't think there will be any major change, but what happens two years from now in the next presidential election, that will be interesting to watch. We have a proud Indian heritage, but for our adopted country, we share a responsibility for its success.

"We were watching some close races. The Indian-Americans have lost some, and won some. So, it is a good sign that the Indian-American community is getting involved in the political scene of America. We hope that we contribute to the Indian-American friendship," Gupta said.

Venu Rajamony, who served as India's ambassador to the Netherlands from 2017 to 2020, told PTI that the midterm results are "good for the US and good for the world".

He said President Trump is there for another two years and, pointing to his mercurial nature, added that "we do not know what his next steps will be in the Gulf".

"Let's hope sense and sobriety prevail, and he will be held back by others in his own administration and party," Rajamony said.

A great deal of diplomacy has been going on in the background, and let's hope these will bear fruit and the Strait of Hormuz will open soon, he said.

This is in the best interest of the world as well as India, the former diplomat maintained.

Carnegie Endowment for International Peace, a US-based global think tank on diplomacy and strategic affairs, said the US midterm elections may well prove to be among the most consequential in the nation's modern era.

"Only twice in the past century has an incumbent president's party gained seats in both the House and the Senate. But this election is not simply a referendum on President Donald Trump's performance on the economy, cost of living, immigration, and healthcare," it said while announcing an event -- 'Assessing the U.S. Midterms' on November 6.

"Voters heading to the polls in this election are facing many questions: the scope of presidential power, the value of congressional oversight, an ongoing conflict with Iran, corruption, and even the durability of America’s democratic institutions," the note said.

Indian-origin US citizen Siva in Georgia told PTI that politics in the country has "divided people" and there is a "clear division, fluctuations towards extremes".

"That is something which is very significant for this election... We are looking for a more moderate stand on everything," he said. PTI

Iranian officials say midterm results show US voters have rejected Trump's war

Iranians on Wednesday struck a defiant tone, celebrating US voters' rebuke of President Donald Trump in the midterm elections while many in the Middle East waited to see how the results could affect the Iran war.

Concerns about the war, particularly frustration over rising prices for fuel and other goods in the US, helped Democrats win control of both chambers of Congress in Tuesday's vote, a sharp setback for Trump and his Republican Party.

Iran's supreme leader said those who think partisan changes in the United States can change its hostility toward the Islamic Republic are “gravely mistaken.”

In a letter shared on his social media account, Ayatollah Mojtaba Khamenei, who hasn't been seen publicly since the war began in late February, said: “If there are still those who harbour even a slight hope for a change in behaviour or partisan and factional shifts within the system of domination, or who imagine that by giving concessions to America they can dissuade it from hostility toward the Iranian nation, they are gravely mistaken.”

The broader region has been on edge for weeks over the prospect of the US resuming full-scale military operations against Iran for the first time in almost two months. Talks aimed at preventing renewed fighting are continuing, while other US allies in the region urge Washington against resuming a war that began more than eight months ago and has rattled the global economy and devastated Iran.

Israeli Prime Minister Benjamin Netanyahu has reportedly pushed for more strikes, while Trump has alternated between threatening major strikes and pushing for a deal.

Iran's chief negotiator and parliament speaker, Mohammad Bagher Ghalibaf, wrote Wednesday on X that "Americans said NO TO WAR, and we endorse this message.”

“If the US govt betrays their public will to serve international paymasters and blackmailers, it will learn our NO comes with a Nightmare.”

Despite ceasefire agreements and repeated diplomatic efforts, military confrontations have continued in southern Iran and around the Strait of Hormuz.

Iran's Foreign Ministry spokesperson said in a social media post that Americans had sent a clear message and warned Washington against ignoring it. If the US continues to ignore reality, the spokesperson said, “the consequences of this grave miscalculation will extend far beyond what you have already witnessed.” AP

Blue wave, Red face: Social media roasts Trump after Democrats sweep midterms

From a ‘hazardous waste’ bin to a roadside stall in India, the internet is having a field day with Donald Trump's midterm loss. Read the full story here.

World shares are mostly higher as Democrats gain majorities in both the US House and Senate

World shares were mostly higher Wednesday after the US midterm election yielded majorities for the Democrats in both houses of Congress.

US futures edged higher and oil prices retreated.

The future for the S&P 500 was up 0.2 per cent and that for the Dow Jones Industrial Average rose 0.4 per cent.

The results were a decisive rebuke of Republican governance and will bring a new era of congressional resistance to US President Donald Trump.

Markets generally prefer that control of Washington be split between the Republicans and the Democrats. That is seen as offering less risk of sweeping policy changes that could reshape the economy.

“The magnitude of the gains for the Democrats in the midterms does not change too much for the near-term policy outlook, given the party still lacks a filibuster-proof majority in the Senate and President Trump has veto power to block legislation,” Stephen Brown of Capital Economics said in an analysis.

Investors have mainly been preoccupied recently by issues related to artificial intelligence. Markets have been roiled by bouts of selling of technology shares by investors worried that AI-related share prices have shot too high.

In early European trading, the CAC 40 in Paris rose 0.4 per cent to 8,055.02. Britain's FTSE 100 edged 0.1 per cent higher to 10,646.43, and Germany's DAX climbed 0.5 per cent to 25,995.13.

The eurozone's flash consumer price index for October was due to be announced Wednesday. Traders are also watching for an interest rate decision by the Bank of England, due Thursday.

In Asia, Japan's Nikkei 225 dipped 1.4 per cent to 62,188.63.

Shares of OpenAI investor SoftBank Group dropped 3.2 per cent. Japanese memory chipmaker Kioxia Holdings tumbled 5.4 per cent, paring losses as its guidance for the October-December period missed market expectations.

South Korea's Kospi index rose 0.6 per cent to 5,683.80, as memory chipmaker SK Hynix edged 0.1 per cent lower, while Samsung Electronics slid 0.7 per cent.

In Hong Kong, the Hang Seng advanced 1.5 per cent to 23,888.46, while the Shanghai Composite index gained 2.2 per cent to 3,686.17, rebounding from its year-low on Tuesday.

Australia's S&P/ASX 200 fell 0.6 per cent to 8,834.50 after the central bank raised interest rates on Tuesday.

Taiwan's Taiex lost 0.8 per cent. India's Sensex climbed 0.3 per cent.

On Tuesday, the S&P 500 rose 0.4 per cent, even though most of the stocks within the index fell. The Dow Jones Industrial Average dropped 197 points, or 0.4 per cent, and the Nasdaq composite climbed 0.8 per cent.

Chipmakers Nvidia and Broadcom were the strongest forces pushing the S&P 500 upward. Also boosting the market were several companies that are spending heavily on AI. Microsoft, Amazon and Meta Platforms all rose more than 2 per cent.

Apple was long seen on Wall Street as a Big Tech company that's less dependent on AI. But it's still feeling the effects of the AI boom.

Memory chips for computers have become more expensive because of the demand created by the rush to build AI data centres. Those higher costs are hitting Apple, which said it expects to make less profit from each USD1 of its revenue during the final three months of this year.

On the winning side Tuesday were stocks of several companies that reported stronger profits for the summer than analysts expected. DuPont rallied 8.6 per cent for one of the biggest gains in the S&P 500, and Celanese climbed 5 per cent.

Companies are expected to continue to deliver big gains in profits as the US economy keeps chugging along, even with high inflation and elevated interest rates.

An encouraging report Tuesday on the US job market said employers were advertising more job openings at the end of September than economists expected. That helped push the yield on the 10-year Treasury up to 4.96 per cent from 4.91 per cent late Monday.

In other dealings Wednesday, the price of Brent crude, the international standard, rose 0.4 per cent to USD 103.88 a barrel. US benchmark crude oil gained 0.3 per cent to USD 96.34 per barrel.

The US dollar fell to 158.17 Japanese yen from 158.69 yen. The euro rose to USD 1.1242 from USD 1.1194. AP

Indian-Americans make strong showing in US midterm elections

Indian-American Democratic lawmakers Ami Bera, Ro Khanna, Suhas Subramanyam and Pramila Jayapal have been re-elected to the US House of Representatives, while Pia Dandiya has made her debut in the US Congress, marking a strong showing by the community in the midterm elections.

Several other Indian-American candidates contested elections for offices ranging from governor to state legislatures and local bodies.

The elections, held on Tuesday, covered all 435 seats in the US House of Representatives, 35 Senate seats, 36 gubernatorial posts and several local public offices.

Bera, 61, has won re-election to the US House from California's 3rd Congressional District, defeating Republican Robb Tucker. He has secured an eighth term.

A physician-turned-politician, Bera is the longest-serving Indian-American in the US Congress and is considered a prominent voice on healthcare and diplomacy.

He was first elected to Congress in 2012 and took office in January 2013. He currently serves on the House Foreign Affairs Committee.

Born in Los Angeles in 1965 to Gujarati immigrant parents, Bera attended public schools in California. He earned a bachelor's degree in biological sciences and a Doctor of Medicine degree from the University of California, Irvine.

Khanna, 50, has won re-election from California's 17th Congressional District, located in the heart of Silicon Valley. He is completing his fifth term and will begin his sixth in January.

Khanna was born in Philadelphia to a middle-class family. Both his parents immigrated to the United States from India in the 1970s.

Subramanyam, 40, has been re-elected from Virginia's 10th Congressional District, defeating Republican Dave Beckwith. He secured over 61 per cent of the vote against Beckwith.

Subramanyam previously served as an adviser to former US President Barack Obama. Born in Houston to Indian parents, he attended Tulane University in New Orleans. He was first elected to Congress in 2024 and will now serve his second term.

Jayapal, who represents Washington's 7th Congressional District, has secured a sixth term in the House of Representatives.

Last month, her criticism of India's Special Intensive Revision of electoral rolls drew a public rebuke from India's ambassador to the US.

Jayapal, who was first elected to Congress in 2016, has been a prominent voice on immigration reform and healthcare issues.

Dandiya, 39, won Florida's 22nd Congressional District, defeating Republican Casey Askar. She secured 51.9 per cent of the vote.

A former high school principal, Dandiya was born and raised in Palm Beach County in Florida. She began her career as a teacher before becoming a high school principal in Harlem, New York.

In Maryland, Indian-American Lieutenant Governor Aruna Miller, a Democrat, secured another term.

Meanwhile, Indian-American Vivek Ramaswamy, who was backed by US President Donald Trump, lost Ohio's gubernatorial race to Democrat Amy Acton. Ramaswamy, the son of immigrants from Kerala, had won the Republican primary in May.

Republican Mahesh Ganorkar lost the contest for North Carolina's 4th Congressional District to Democratic incumbent Valerie Foushee.

Democrats have won control of both the House of Representatives and the Senate, taking control of Congress from the Republican Party.

The Congress elected on November 3 is sworn in on January 3, 2027.

Based on race calls as of November 4, the incoming Senate has 53 Democrats and 42 Republicans, with 5 races still uncalled. Democrats have won control, according to official figures.

In the House, the count so far is 223 Democrats and 131 Republicans, with 81 seats still uncalled. Democrats have won control.

As of November 2, the US Senate comprised 53 Republicans, 45 Democrats and two Independents, while the House of Representatives had 218 Republicans, 214 Democrats and one Independent, with two of its 435 seats vacant, according to congressional data.

Several other Indian-American candidates were also awaiting the outcome of their contests.

The results of several other Indian-American candidates were also awaited.

Democrat Amish Shah contested Republican Jay Feely in Arizona's 1st Congressional District, while Indian-American Nithya Raman faced incumbent Karen Bass in the Los Angeles mayoral race.

In Texas, Democrat Pooja Sethi contested Republican Jennifer Mushtaler in House District 47, while fellow Democrat Sandeep Srivastava faced incumbent Republican Matt Shaheen in District 66.

The Indian-American community is estimated to number over 5 million, making it the second-largest Asian-origin population in the United States.

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Congress cites US mid-term results to slam 'One Nation, One Election' idea

The Congress on Wednesday cited the results of the US mid-term elections to stress on the power of such polls in enforcing accountability, and claimed that the 'One Nation, One Election' proposal advocated by the Modi government would significantly blunt that instrument.

In a stinging rebuke to President Donald Trump, American voters gave the opposition Democratic Party control of the US Congress and flipped key gubernatorial posts in widely watched elections that will have consequences far beyond America.

Reacting to the development, Congress general secretary in-charge of communications Jairam Ramesh described the results as a “stunning verdict” against Trump.

“Personalities aside, the results demonstrate the power of mid-term polls to enforce accountability. In our own country, the ONOE (One Nation, One Election) idea that is being advocated by the Modi government will significantly blunt that instrument,” Ramesh said on X.

The US mid-term elections have also restored the institutional balance that was at the core of a constitutional democracy, he said.

"That balance has been dangerously disturbed in India since 2014," Ramesh added.

Trump’s Republican Party faced stunning defeats in its strongholds such as Texas, Georgia and Iowa, where it lost the governors’ posts to the Democrats. The grand old party also faced a drubbing in Senate races in Texas, Maine, South Carolina, North Carolina, Kansas, Iowa -- where Trump campaigned with a simple message urging voters to pretend that he was on the ballot.

The widespread losses were attributed to anger against Trump’s policies, including the war on Iran, which have led to increased cost of living and high diesel prices.

Trump admits Iran war contributed to Republican losses

US President Donald Trump has admitted Iran war was one of the factors that contributed to Republican Party's losses in the midterm elections.

“Iran was a piece of it,” Trump told The Wall Street Journal when asked whether the war contributed to Republicans’ poor performance in the election.

“I did the right thing. I would have done it again,” he added.