Trump will bring good luck for Indian investors, who predicted this?

Donald Trump News: The world is currently awaiting the results of the US presidential election, and many exit polls are indicating that Donald Trump is close to becoming president once again. If Trump wins, it can have far-reaching effects on the world as well as India. Leading global brokerage firm Emkay Global estimates that Trump's victory can prove beneficial for Indian investors. In this article, let us know how Trump's victory can give momentum to the Indian stock market and why it can be a positive sign for the Indian economy.

Trump can be 'good luck' for the Indian stock market

According to the report of Emkay Global, if Trump wins the US presidential election, it can see a small but effective rally in the Indian stock market. Trump's victory can strengthen the sentiment of Indian investors and this can lead to a boom in the Indian stock market. Trump's economic policies have been particularly focused on imposing tough tariffs against China, and this time too it is estimated that new tariffs can be imposed on China. This will increase challenges for China, while emerging markets like India may benefit indirectly.

Impact of tariff hike on China on India

The report says that if Trump becomes president, tariffs on China are likely to increase. This may change the investment flow of foreign companies, which earlier used to invest in China, now they may turn towards India. Recently, foreign investors (FIIs) have made record withdrawals from the Indian stock market, with a withdrawal of about $11.2 billion in the month of October. The uncertainty of the US election is considered to be a major reason behind this. Trump's victory may end this instability and FII investment may come back to the Indian market.

Loss for China, opportunity for India

According to Emkay Global, Trump's victory may lead to a decline in China's stock market. The main focus of Trump's policies has been to affect China's exports, and this policy may have a negative impact on China. At the same time, the Indian stock market and foreign portfolio investment (FPI) are likely to increase, as global investors may see India as a strategic option.

The report states that Trump's victory may bring a short-term rally in the Indian stock market, although its long-term sustainability will depend on the earnings and valuation of the Indian market. Emkay Global's equity strategic team believes that Trump's economic policies, especially on trade war and raising tariffs, may make India an attractive option for global investors.

Effects of Kamala Harris's victory

The Emkay Global report also states that if Democratic Party candidate Kamala Harris wins the election, a new wave of selling may come in the stock market. Harris's economic policies and business approach are likely to change, which may change the investors' outlook. This may lead to volatility in the Indian market and investors may be more cautious in India than in China.

Effect on foreign exchange market too

The US presidential election will not only affect the stock market but also the foreign exchange market. Trump's victory is likely to strengthen the dollar, while the Indian rupee may show signs of strengthening. This will benefit Indian importers, but exporters may face challenges.

Conclusion

Trump's victory in the US presidential election can give a new direction to the Indian economy. The Indian market may get indirect benefits from the increase in tariffs on China, and foreign investors may also turn towards India. This can be a positive sign not only for the stock market but also for the overall economic condition of India. However, it will be important to see how Trump's economic policies are implemented and how India takes advantage of this opportunity.