According to a report by Angle One Wealth, Donald Trump victory in the U.S. presidential election could favorably influence stock markets, particularly in the U.S. and India. People believe he will usher in investor confidence with his pro-market tag.
The report suggests that India may see a short-run market boost. Partly due to the “China+1” strategy adopted by companies to expand their manufacturing bases beyond China. This strategy has benefited India in the past. Sectors like electronics and chemicals are expected to perform well again, especially following Trump’s victory.
India showed resilience in mobile phone assembly and chemicals during previous tariff increases. With Trump’s return to power, the country was more equipped to grab such advantages. Over the years, India has been working quite well in bringing exponential enhancement in its export and manufacturing aspects. Government initiatives like the Production Linked Incentive scheme, the ‘Make in India’ campaign, tax holidays. And a dedicated semiconductor program have made things more export-friendly.
It also outlines that India’s readiness has improved in the last couple of years. In this case, there can be a rise in the demand for IT and pharma. The growth in the US under Trump might lead to an increase in demand for IT services. More so through GCCs set up in India. Similarly, there could be a rise in demand for generic pharmaceutical drugs, with exporters from India gaining.
The upside would, therefore, be resisted in the domestic-oriented sectors like FMCG. FMCG would also see rural growth in India supporting demand for these products. Higher returns on equities and attractive valuation make banking a very lucrative option for investors.
All in all, the report concludes, together taken, the triumph of Trump and preparations by India in the past few years. Trump’s victory may open up promising investment opportunities. Most probably, investors will see better performance of Indian stocks over the coming months.
ANI
