05/11/26, PostMarket REPORT by Sharmeeli Mallik

Indian stock markets witnessed a sharp rally on Thursday, with the Sensex closing 2008.61 points or 2.60 per cent higher at 79,310.01 and Nifty 50 ending 576 points, or 2.40 per cent up at 24,536.60, as easing crude oil prices and renewed foreign investor buying lifted market sentiment.

Today' rally was broad-based, with buying seen across market segments, sectors and heavyweight stocks. Joining the D-Street bull run ahead of Diwali, the Nifty Midcap 100 advanced 1.87 percent while the Nifty Smallcap 100 rose 0.53 percent.

The rally came amid improving global sentiment following the November 2026 US midterm elections, in which the Democratic Party won control of both the Senate and the House of Representatives, delivering a significant political setback to President Donald Trump's administration.

Additionally, Brent crude prices declined sharply below USD 100 per barrel and were trading at USD 95.69 per barrel at the time of writing this report around 3.05 pm. The decline offered relief to an oil-import-dependent economy such as India and supported sentiment in domestic equities.

Nifty Midcap 100 performance today: Top gainers and losers

 The Nifty Midcap 100 index rose 1.87 percent or 1,115.40 points to close at 60,620.90. The index opened at 60,414.65 and touched an intra-day high of 60,757.90.

The gains in the index was led by Ashok Leyland which rose over 10.50 percent, followed by Motilal Oswal Financial Services (8.09 percent), Groww (7.25 percent), Patanjali (6.98 percent), Maharashtra Bank (6.90 percent), 360 ONE WAM (6.76 percent), MRF (6.71 percent), and Swiggy (5.94 percent) Among the other gainers on the index were – Kalyan Jewellers, SBI Cards and Payment Services, L&T Finance, Mahindra & Mahindra Financial Services, IndusInd Bank, Biocon and Jubilant Foodworks.

On the other hand, PI Industries,Oil India, Bharat Forge, GE Vernova T&D India, Astral, Apar Industries, NLC India, Tata Communications, Dabur, Nykaa and Premier Energies emerged among the key laggards.

Nifty Smallcap 100 performance today: Top gainers and losers

The Nifty Smallcap 100 index was 0.53 percent higher at 19,126.40. The index opened at 19,298.40 and touched a high of 19,306.35, led by Devyani International, Sammaan Capital, Karur Vysya Bank, IIFL Finance, Wockhardt, Tata Elxsi, Angel One, KPIT Technologies, Brigade Enterprises, Inox Wind, Manappuram Finance, Physicswallah, NBCC (India) whose shares advanced between 4 percent and 9 percent.

In contrast, Kirloskar Oil Engines, Chennai Petroleum Corporation, TD Power Systems, Mangalore Refinery and Petrochemicals (MRPL), BEML, The Great Eastern Shipping Company, Sterlite Technologies declined between 5 percent and 12 percent.

Source: Network18 

Disclaimer: The views and investment tips expressed by investment experts are their own and not those of us. We advise traders to check with certified experts before taking any investment decisions.

05/11/26, PostMarket REPORT by Sunil Sankar Matkar

The Nifty 50 has firmly entered bullish territory, backed by strength across key technical indicators over the last six consecutive sessions. The index surged 2.4 percent on November 5, marking its biggest single-day gain in seven months. Renewed optimism over a potential easing of external headwinds, including West Asia tensions, cooling crude oil prices and tariff-related concerns, following the Democratic Party's landslide victory over Trump's Republican Party in the US midterm elections, lifted market sentiment.

The Nifty 50 has rallied nearly 1,900 points over the last six consecutive sessions and moved convincingly above its key long-term moving averages, with the short- and medium-term moving averages also trending upwards. The 10-day EMA has moved above the 50-day EMA and is approaching the 100-day EMA. Additionally, the index has surpassed the 78.6 percent Fibonacci retracement level of its decline from 24,774 to 22,180, signalling strengthening bullish momentum.

Notably, the daily Relative Strength Index (RSI) has climbed to 74.69, its highest level since September 2024, indicating strong upward momentum. The Moving Average Convergence Divergence (MACD) indicator has also maintained its upward trajectory, with the green histogram bars expanding for the sixth consecutive session.

Against this backdrop, market experts expect the Nifty 50 to move towards 24,800, near its August high, which is likely to act as the next major hurdle. A sustained move above this level could open the door towards 25,000 and subsequently 25,500. However, the index may first enter a consolidation phase after its sharp recent rally. On the downside, 24,300, Thursday's low, is the immediate support, followed by the crucial 24,000 zone.

The Nifty 50 opened more than 400 points higher on Thursday and extended its gains as the session progressed. The index touched an intraday high of 24,580 in the second half of the session before closing at 24,537, up 576 points or 2.40 percent. This was its biggest single-day gain since April 8.

On the daily chart, the index formed a strong bullish candle. Meanwhile, the intraday charts continue to show a higher-high and higher-low formation, indicating that the prevailing uptrend remains intact and further upside is possible.

"For day traders, 24,350 would act as a key support level. As long as the market is trading above this level, bullish sentiment is likely to continue," said Shrikant Chouhan, Head of Equity Research at Kotak Neo.

On the upside, the rally could extend towards 24,700–24,800. However, a break below 24,350 could trigger a correction towards 24,250–24,200, he added.

According to weekly options data, the 25,000 strike, which has the highest concentration of Call open interest, could act as a crucial resistance level for the Nifty 50. The 24,800 strike, which has the next-highest Call open interest, is likely to serve as an immediate resistance.

On the downside, the 24,400 and 24,300 strikes have significant Put open interest and are likely to act as immediate support levels for the index.

Meanwhile, the fear gauge India VIX continued to trade above the 15 mark, signalling persistent caution among bulls. The index rose 2.58 percent to 15.58. A decisive decline below 14 could help improve market confidence and provide further comfort to bullish traders.

Bank Nifty

The Bank Nifty staged a strong performance on Thursday, opening nearly 1,200 points higher and extending its gains through the session. The index closed at 57,774, its highest level since August 31, gaining 1,860 points or 3.33 percent. This was its biggest single-day rally since April 8.

On the daily chart, the Bank Nifty formed a sizeable bullish candle, reflecting strong buying interest. It also moved decisively above its key short- and long-term moving averages. Meanwhile, the daily RSI crossed above the 60 mark and continued to trend higher, indicating strengthening bullish momentum.

"Going forward, the 57,200–57,100 zone is expected to act as a crucial support area for the index. As long as Bank Nifty sustains above the 57,100 level, the bullish bias is likely to remain intact," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

In the short term, the index could extend its upmove towards the 58,200–58,300 zone, with further upside potential towards 58,700, around its June high, and subsequently 59,000, he added.

Report by Sunil Sankar Matkar 

Source: Network18 

Disclaimer: The views and investment tips expressed by investment experts are their own and not those of us. We advise traders to check with certified experts before taking any investment decisions.

05/11/26, LONG TERM CAPITAL GAINS EXEMPTION

Government could abolish long-term capital gains (LTCG) tax across investor categories even keeping its fiscal consolidation road map largely unaffected, as the resulting revenue loss is likely to be limited to Rs 40,000-50,000 crore in FY28, a report said on Tuesday.

 The report from SBI Research estimated that eliminating LTCG tax would reduce govt revenue by nearly 0.1-0.2% of GDP, a level it said could be absorbed while keeping fiscal deficit targets broadly on track. "We believe govt would be able to take this hit if hypothetically, the entire capital gains taxes were abolished," the report said. It estimated LTCG collections at around Rs 1 lakh crore in FY26 and projected them to decline to Rs 40,000-50,000 crore in FY27.

Source : Times

05/11/26, SNAPS

 

Source:Inshorts

05/11/26, Chip Industry in India :

Rajiv C Mody, CMD & CEO,  Sasken Technologies 

India has built strong reputation in semiconductor design, but the next opportunity lies in moving beyond engineering services to owning technology and developing products for global markets. Sasken Technologies is positioning itself to tap this shift by expanding its proprietary silicon IP, strengthening its product engineering capabilities and deepening customer partnerships. As India seeks a larger role in the global semiconductor value chain, Rajiv C Mody, CMD & CEO, Sasken Technologies, speaks to Sudhir Chowdhary about what it will take to move up the value chain. Excerpts:

India’s semiconductor ambitions are beginning to take shape, with several projects moving towards production. What will it take to build a globally competitive semiconductor ecosystem rather than just a manufacturing base?

India’s semiconductor story has genuinely moved from intent to execution; with Semicon 2.0 in place, anchor projects secured and commercial production now underway. The next test is building the flywheel that connects design, manufacturing, packaging, product deployment and customer offtake – each reinforcing the other. That will require reliable infrastructure, strong local ecosystems for equipment and materials, a design and IP base that creates demand for manufacturing, talent across the full value chain, and most importantly, real customer adoption. Success will ultimately be measured not by plants completed, but by chips shipped, yields improved, Indian IP reaching real customers. Indian silicon companies will have to take the initiative, and have the investment and gumption, to take on flagship product design for globally competitive AI, automotive, and communications silicon products.

What will it take for Indian companies to move up the technology ladder and develop their own semiconductor IP and products?

India’s design strength is a strong foundation, but the next opportunity is technology ownership – reusable IP, fabless companies and reference platforms built around Indian silicon. The realistic path is to focus on where our engineering base and market needs intersect; connectivity, RF, power, automotive, industrial, satcom and AI-at-the-edge. At Sasken, we’re actively making this shift ourselves; evolving from project-based services toward a platform- and IP-enriched model through Sasken Silicon, which spans application-specific integrated circuit (ASIC) and system on a chip (SoC) development, RF, analog, mixed-signal and custom silicon engineering. Our aim is to be a productisation partner that helps Indian chip designers move from a working design to a qualified product an OEM can adopt.

Sasken has worked in semiconductor engineering and silicon automation since its early years. Where do you see the biggest business opportunities as semiconductor manufacturing and design capabilities expand?

The opportunity is far broader than fabs. It exists upstream in equipment and materials, in the middle in design, IP and advanced packaging, and downstream where chips are integrated into vehicles, networks, industrial systems and intelligent devices. India already has engineering depth across many of these layers – what is needed is IP ownership, stronger product orientation and closer engagement with customers. At Sasken, our capabilities across semiconductor engineering, hardware design, embedded platforms, connectivity and AI-led product engineering position us to contribute to that middle and downstream layer.

Building a chip is only the beginning. How can companies like Sasken help take that technology from silicon to finished products that people and businesses can use?

A chip working in the lab is only a milestone – a commercially deployable product needs board and power architecture, firmware, BSPs (board support package), drivers, middleware, connectivity, thermal and reliability validation, security, diagnostics and a reference design that gives an OEM confidence to adopt it. This is precisely where Sasken has built strength over three decades – spanning SoC engineering, hardware design, board bring-up, firmware, validation, connectivity and lifecycle engineering across automotive, telecom, satcom, industrial and intelligent devices. Whether it’s a modem SoC, an Open RAN stack or an AI-enabled edge device, our role is to reduce the distance between silicon and a customer-ready product. The value of semiconductor engineering today is increasingly measured not by how quickly and reliably a chip works inside a customer’s product. Sasken’s motto has been Chip-to-Cognition for a long time, and its breadth of project and product design today indeed reflects that full-stack execution.

Semiconductor engineering requires a very different skill set from conventional IT services. Is the current talent pipeline equipped to meet the industry’s needs, and where are the biggest gaps in training?

While India is producing a strong base of engineers, the ecosystem needs more role-specific readiness. A semiconductor ecosystem needs chip architects, verification engineers, process and packaging specialists, clean-room technicians, firmware developers, validation teams and system integrators.  Training must become far more applied; through labs, real project workflows, industry-designed curricula and exposure to production-oriented engineering.

Through Sasken Academy, we work with universities in India and abroad, to co-design industry-relevant curricula and provide practical exposure through internships. Our internal Gurukul learning platform and Shift-Left engagement with engineering students help build chip-to-system engineers – the people who take silicon from a lab milestone into an OEM-qualified product. That’s the layer India most needs to strengthen.

How important are partnerships between chip companies, startups, universities and global technology firms in building a semiconductor ecosystem that can sustain itself?

Partnerships are absolutely essential – the semiconductor value chain is too specialised for any one company to own end-to-end. A startup may have strong architecture but needs foundry access, packaging support and early customers; a global company may have advanced technology but needs local engineering depth; a university may have research capability but needs a path to commercialisation. The best partnerships produce concrete outcomes – tape-outs, IP blocks, reference designs, trained cohorts and customer deployments. At Sasken, we operate across all these partner types, collaborating with global chip companies and OEMs, engaging with Indian design startups, and building academia partnerships – which allows us to act as a bridge between research, silicon and product deployment.

Looking ahead, where do you see Sasken playing the biggest role in the semiconductor industry, and which technology areas are likely to offer the greatest growth opportunities?

Sasken’s biggest role is to help build the engineering layer that connects India’s semiconductor ambitions to globally competitive products. We see strong opportunities in ASIC and SoC engineering, RF and mmWave, automotive compute, AI-enabled edge systems, 5G/6G and Open RAN, satellite connectivity, power management, advanced validation and embedded intelligence. The long-term shift for Sasken is from project participation toward reusable IP, platforms and deeper co-development with customers. India’s semiconductor success will ultimately be measured not by how many chips are designed or factories built, but by how many Indian technologies become reliable, scalable products used around the world, and that is the silicon-to-systems opportunity we are building toward

Written by Sudhir Chowdary

Source: Financial Express

05/11/26, INDEX LEVELS

 

05/11/26, 15–20 percent rally in Samvat 2083 is a reasonable possibility

According to Ashwini Shami, President and Chief Portfolio Manager at OmniScience Capital, a 15–20 percent rally in Samvat 2083 is a reasonable possibility. He pointed out that whenever the price-to-book value (P/BV) ratio falls below 2.8, the median annualised return over the subsequent 3–5 years has been around 14 percent. He shared this assessment in an interview with Moneycontrol.

Buoyed by strong earnings growth prospects and attractive valuations, Shami is particularly positive on the banking, construction and power sectors in Samvat 2083. He expects these sectors to deliver double-digit earnings growth over the near to medium term.

Currently trading at single-digit to low double-digit price-to-earnings (P/E) multiples, these sectors also offer the potential for valuation rerating, generating alpha over and above broader market returns, Shami said.

Are you confident that the ongoing earnings season has been unexpectedly strong, with demand outperforming expectations despite multiple geopolitical risks?

In spite of higher input costs in commodities and electronics, a weaker rupee helped exporters, especially two-wheeler companies and auto ancillaries, achieve better realizations, resulting in favourable rupee profits. Strong demand also helped these companies undertake selective price hikes to pass on part of the input cost increases and maintain margins.

 Financial services companies, including banks, insurance and consumer finance, reported strong double-digit growth in revenue as well as earnings, in line with our expectations, and are likely to continue the course.

Passenger vehicles struggled to maintain margins even with strong sales growth. The pharma sector also posted poor earnings growth due to various company-specific issues. Therefore, we believe that while overall sentiment has improved, sector-specific plays will depend on the growth outlook as well as current valuation levels.

Do you believe the outcome of the US midterm elections could improve global market sentiment and raise expectations of a more measured approach towards trade and tariff policies going forward?

With a divided government, the expectation is that global market conditions would improve. However, Trump is likely to aggressively use executive power to push his foreign policy without seeking congressional approval. Therefore, it is unlikely that there will be a fundamental change of course on Iran, Russia or trade before 2028.

Nevertheless, there could be some constraints on the current government through spending limits, investigations and legal limits imposed by the courts.

Could the decline in US bond yields and crude oil prices prompt FIIs to redirect investments towards India, while further strengthening the country's macroeconomic outlook?

There are many factors favouring the case for FIIs to increase India allocations. US bond yields have corrected sharply over the last month. The last few weeks have also seen a steep correction in AI stocks globally. Crude has crashed more than 15 percent in the last three days, falling below $95. These factors, along with strong earnings growth in Q2 FY27 and attractive valuations in large caps, are expected to support FII flows.

Do you expect a broad-based rally across Nifty 50 sectors going forward, particularly amid growing expectations of an easing of global tensions? Could the market deliver a 15–20 percent rally in Samvat 2083?

Nifty 50 is already up more than 5 percent in just one week, as multiple factors support the case for increased FII allocation to India. A recent note from Omniscience Capital, detailing a price-to-book study of the last 25 years for Nifty 50, highlighted that as and when the P/BV fell below 2.8, the median 3–5 year annualized return was around 14 percent. Therefore, a 15–20 percent rally in Samvat 2083 is a reasonable possibility.

Do you agree that the current LTCG (Long-Term Capital Gains) tax provisions complicate taxation for FIIs and that the framework needs to be restructured?

While a higher capital gains tax definitely eats into investors' returns, current LTCG provisions are not the most significant reason behind the FII selling seen over the last two years.

FIIs sold for their own specific reasons, including high yields on treasuries and aggressive chasing of AI stocks in markets such as Taiwan and South Korea. The expected restructuring of LTCG would definitely be a positive to attract foreign capital as the fundamental case for India allocation improves for FIIs.

Which sectors do you believe could be the biggest outperformers or potential 'firecrackers' in Samvat 2083?

On the back of strong earnings growth and attractive valuations, we are quite positive on banking, construction and power in Samvat 2083. We expect these sectors to deliver double-digit earnings growth in the near to mid term, and they are trading at single-digit to low double-digit P/E multiples, building a case for rerating alpha over and above broader market returns.

Have consumer stocks become reasonably valued at current levels, and does this present an attractive investment opportunity?

Consumer stocks are saddled with a double burden: on one side, margin pressure due to input cost escalation, especially petroleum-related raw materials, and on the other, a mid-single-digit volume growth outlook. The largest names in this space continue to trade at P/E multiples upward of 40.

Given these fundamental challenges and overvaluation, we do not believe it is an attractive space for investors.

Report by Sunil Sankar Matkar

Source:Network18)

05/11/26, Brent crude falls below $100 per barrel for first time since October amid hopes of Iran peace deal

Brent crude prices fell below the $100-per-barrel mark on Wednesday for the first time since early October, as markets weighed the possibility of an end to the Iran conflict following US President Donald Trump's party's defeat in the midterm elections.

Brent crude futures for January delivery dropped 4.7% to $98.76 per barrel around 1605 GMT. The US benchmark West Texas Intermediate (WTI) also declined 4.5% to $91.73 per barrel.

Brent had settled at its lowest level in nearly four weeks in the previous session as traders assessed developments in diplomatic efforts to end the wars in Ukraine and Iran.

"Larger crude oil exports out of the Middle East along with President Trump stating he has no immediate plans to strike Iran is keeping the pressure on crude oil prices for now. The Democratic control of Congress could also tighten US military spending in the Middle East and further heighten the possibility of a peace deal sooner than later," said Dennis Kissler, senior vice president of trading at US financial services firm BOK Financial, as quoted by news agency Reuters.

Trump acknowledged that the Iran war had contributed to his party's sweeping defeat in the midterm elections, with Democrats winning control of both the House of Representatives and the Senate. In an interview with the Financial Times on Tuesday, Trump said the US had no immediate plans to strike Iran.

However, Iran's Supreme Leader Mojtaba Khamenei said in a written statement that US hostility towards the country would continue regardless of which party was in power. Meanwhile, Yemen's Houthis claimed to have targeted King Khalid International Airport in Riyadh, although Saudi authorities did not confirm the attack.

Markets are also watching for progress in negotiations to end the conflict, with Qatar stepping up mediation efforts to prevent further escalation following the US elections. However, a senior Iranian official told Reuters on Tuesday that Tehran and Washington remained far from reaching an agreement to end the war.

"The elections are giving bears a reason to cast doubt on a continuation in Iran... I'm more concerned that we can see an escalation in Iran sooner than a resolution. President Trump may not say now, but we know that doesn't mean not soon," said Carl Larry, who leads the trading and North America Risk team at Enverus, as quoted by news agency Reuters.

Meanwhile, Gulf exports of crude oil, condensate and refined products, excluding liquefied petroleum gas (LPG), averaged 17.1 million barrels per day in October, according to ship-tracking data from Vortexa. This was lower than the 18.9 million barrels per day recorded in September but remained at roughly three-quarters of pre-war levels.

The United Arab Emirates is also considering building a third oil-export pipeline to transport crude outside the Strait of Hormuz, Bloomberg reported, citing people familiar with the matter. The move is aimed at significantly reducing the country's dependence on the critical shipping route.

In the US, crude oil, gasoline and distillate inventories declined last week, according to data released by the Energy Information Administration (EIA) on Wednesday.

US crude inventories fell by 865,000 barrels to 409.8 million barrels in the week ended October 30. This was contrary to expectations of an increase of 877,000 barrels, according to a Reuters poll of analysts.

Separately, US oil stocks fell by 5.27 million barrels during the same week, market sources said on Wednesday, citing data from the American Petroleum Institute.

With Agency Inputs

Source: Network18 

04/11/26, Indian Metals & Ferro Alloys (IMFA)

Indian Metals & Ferro Alloys (IMFA) shares ended 2.5 percent higher on Wednesday, November 3, after the company announced strong set of earnings in July-September quarter of the financial year 2026-27, aided by higher volumes on the back of increased capacity, along with continued progress in energy diversification and operational efficiency.

The stock opened at Rs 1,095 against the previous close of Rs 1,098.60, on the BSE. After the release of the Q2 FY27 results of the company, IMFA's shares rallied 6.9 percent to touch a closing high of Rs 1175

At close, the stock settled 2.76 percent higher at Rs 1128.90.

IMFA Q2 results

IMFA, India's largest producer of value-added ferro chrome, reported a 50.6 percent year-on-year (YoY) increase in consolidated profit after tax to Rs 148.77 crore for the September quarter of FY27, compared with Rs 98.77 crore in the year-ago period. S5cequentially, the profit, however, declined 23.3 percent from Rs 192.59 crore posted in the June quarter.

 The company reported a 35 percent year-on-year (YoY) increase in revenue to Rs 968.17 crore for the second quarter of the financial year 2026-27 (Q2 FY27), compared with Rs 718.65 crore in the corresponding quarter last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA)surged 69.9 percent YoY to Rs 235.04 crore, compared with Rs 138.34 crore a year ago. EBITDA margin expanded to 24.3 percent in Q2 FY27 from 19.2 percent in the year-ago period.

Along with quarterly results, the board of IMFA declared an interim dividend of Rs 5 per share for the financial year ending March 31, 2027.

The company has fixed Thursday, November 12 as the record date for the interim dividend while it will be paid to shareholders on or before Wednesday, December 3.

IMFA's exports rise 35% in Q2 FY27

Exports, a key contributor to IMFA's business, increased to Rs 817.54 crore in Q2 FY27, compared with Rs 603.96 crore in the corresponding quarter of the previous financial year.

For the first half of FY27 (H1 FY27), exports stood at Rs 1,611.15 crore, against Rs 1,160.22 crore in H1 FY26, marking an increase of 38.9 percent.

The company's revenue for H1 FY27 rose to Rs 1,928.62 crore from Rs 1,360.19 crore in the year-ago period. EBITDA nearly doubled to Rs 516.31 crore from Rs 263.81 crore, while PAT increased to Rs 340.26 crore from Rs 190.25 crore.

IMFA's Kalinganagar project to boost production capacity

Separately, IMFA informed that its Greenfield Project at Kalinganagar (KNR 1) was formally inaugurated by Chief Minister of Odisha Mohan Charan Majhi on October 14. “While the first furnace is operational, commissioning activity relating to the second furnace has commenced and hot metal tapping is expected soon. With this, the company's total installed capacity will increase to 534,000 tonnes per annum reinforcing its position as India's largest producer of ferro chrome and amongst the foremost globally,” it said in a statement.

Subhrakant Panda, Managing Director of IMFA said, “While keeping our focus on a fully integrated business model that remains resilient and competitive across market cycles, a substantial expansion in smelting capacity after the commissioning of the Kalinganagar Greenfield Project will cater to rising demand. We also remain confident about supportive ferro chrome prices given cost pressures faced by non-integrated producers. Alongside capacity growth and a shift to hybrid renewable energy, production of niche grades and a proposed diversification into Low Carbon Ferro Chrome will broaden the product range and bolster margins. Our aim remains to grow responsibly, supported by our distinctive strengths.”

Report by Sharmeeli Mallick

Source: Network18 

04/11/26, Tesla and SpaceX shares fell up to 6 percent in pre-market trading on Wednesday as Democrats swept to control of Congress in the US, raising concerns among investors over the political and regulatory outlook for companies backed by billionaire Elon Musk

 

At around 6:15 pm IST, Tesla shares were trading at USD 375.75 on the Nasdaq, down 5.71 percent. SpaceX shares also declined 5.67 percent to USD 133.30.

The selling came amid investor concerns over the possibility of tighter regulations around artificial intelligence (AI). Both companies are expanding their presence in the AI sector, while a potential mega-merger between Tesla and SpaceX could also attract regulatory scrutiny.

Access to a military version of SpaceX's Starlink satellite service has also emerged as a point of tension involving the US, Ukraine and Russia.

Musk had contributed nearly Rs 4,000 crore to Republican Party funds and urged his 240 million followers on social media platform X to vote against Democrats.

His close association with US President Donald Trump and support for Republican candidates have also made his companies sensitive to political developments. A Democratic victory could raise concerns among investors over the possibility of changes in government policies, regulations and business support affecting Musk's companies.

"Guess my election-interfering space lasers didn't work this time," Musk wrote in a joking post on X.

SpaceX, which entered the ranks of the world's most valuable companies after going public earlier this year, generates billions of dollars in revenue through contracts with the US government.

The Democrats' statewide sweep in Texas dealt a particular setback to Musk, who has based both Tesla and SpaceX in the state and aligned himself with Republican politicians.

The decline in Musk's companies came even as US stock futures staged a sharp recovery, reversing steep early losses triggered by the Democrats' sweeping victory in the midterm elections.

Nasdaq 100 futures recovered around 950 points from their intraday low, while Dow Jones and S&P 500 futures also moved into positive territory as investors reassessed the implications of a divided US government for Wall Street, AI stocks and the broader economy.

Tesla shares have gained 34 percent since hitting a low in late July, supported by investor optimism over its AI projects and the potential combination with SpaceX.

Shares of Musk's companies have been sensitive to election outcomes in the past. Following Trump's re-election in 2024, Tesla shares surged more than 90 percent in a little over a month.

However, those gains were subsequently reversed as Musk's relationship with Trump deteriorated and investors grew increasingly weary of his involvement in the Department of Government Efficiency (DOGE).

(With inputs from Bloomberg)

Report by Network18