Trump Vs Harris: Whose win will usher in bigger gains for Indian markets?

The financial markets are watching the US Presidential Election with bated breath. The street is however divided on who could ring in higher gains. While Trump seems to promise active rate action, Harris offers stability- all eyes on the market verdict.

The election for the next US President is underway. While there is no clear correlation between the US Presidential election and the Indian markets, the policies of the new government do impact the extent of the return and how the stocks pan out. As a result, you will see that there is a sense of apprehension in the market.

In many ways, the results of the US election are also set to determine the direction of flows to the emerging markets including India, the dollar’s strength and the rate action from Central Banks globally. As a result the overall impact on the economy is expected to also steer the Nifty and Sensex.

Can Trump mean good news for India?

The outcome of the US Presidential elections seems too close to call as of now. Dhiraj Relli, MD & CEO of HDFC Securities pointed out that “from a medium-term perspective, Trump may be good for India and Indian markets due to the domestic demand-driven growth model and benefits from lower commodity prices, supply chain shifts, and foreign policy. Lower commodity prices owing to the hit to China’s growth and lower oil prices, due to a greater push towards fossil fuels, could be a macro tailwind for India.”

He added that a “win by Harris could be largely neutral for the global economy, equity markets, energy prices, gold prices and base metal prices. A Harris win will also mean it is easier for highly skilled immigrants to work in the US, which will be a positive for the Indian IT sector. A Trump win could cloud the prospects for the Indian IT sector for some time. Trump’s noise on the reported India’s high tariffs will come to test if he comes to power.

He however pointed out that, over the past eight decades the S&P 500’s SPX annualized total return (inflation-adjusted) has been 11.0% in years when a Democrat is President and Congress is Republican-controlled.

Gains or losses could be sector-specific

The 2024 US Presidential election between Kamala Harris and Donald Trump is too close to call,

 » Read More

Related Articles

Zerodha’s Nithin Kamath on SEBI’s new algo trading rules: API limits, strategy restrictions and other key details

Retail traders using broker APIs for automated trades now have new regulations to consider. The market regulator SEBI has rolled out a framework to regulate retail participation in algorithmic trading. Zerodha co-founder Nithin Kamath took to X, formerly Twitter to break down the key points of the new regulations for traders relying on broker APIs

Bank stocks in focus as RBI cuts Policy rate by 25 bps

Banking stocks are in the limelight as the Reserve Bank of India slashed the key lending rates by 25 basis points to 6.25% from 6.5%. The RBI Governor added that “Bank liquidity buffers are sufficient. Though the net interest margin (NIM) moderated, return on assets (RoA) and return on equity (RoE) are robust. The system-level

ITC Share Price Today Live Updates, 07 Feb, 2025: ITC on the radar

Go to Live UpdatesITC Share Price Today Live Updates, 07 Feb, 2025: The ITC share is in news and the counter closed trade on 06 Feb, 2025 at Rs 441.4. The shares touched intraday high of Rs 450.1 in the last trading session while the intraday low was at Rs 438.25. The company’s market capitalization

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Zerodha’s Nithin Kamath on SEBI’s new algo trading rules: API limits, strategy restrictions and other key details

Retail traders using broker APIs for automated trades now have new regulations to consider. The market regulator SEBI has rolled out a framework to regulate retail participation in algorithmic trading. Zerodha co-founder Nithin Kamath took to X, formerly Twitter to break down the key points of the new regulations for traders relying on broker APIs

Bank stocks in focus as RBI cuts Policy rate by 25 bps

Banking stocks are in the limelight as the Reserve Bank of India slashed the key lending rates by 25 basis points to 6.25% from 6.5%. The RBI Governor added that “Bank liquidity buffers are sufficient. Though the net interest margin (NIM) moderated, return on assets (RoA) and return on equity (RoE) are robust. The system-level

ITC Share Price Today Live Updates, 07 Feb, 2025: ITC on the radar

Go to Live UpdatesITC Share Price Today Live Updates, 07 Feb, 2025: The ITC share is in news and the counter closed trade on 06 Feb, 2025 at Rs 441.4. The shares touched intraday high of Rs 450.1 in the last trading session while the intraday low was at Rs 438.25. The company’s market capitalization

RBI announces additional authentication layer for online international digital payments

Newly appointed RBI Governor Sanjay Malhotra on Friday announced a 25-bps repo rate cut, giving much-needed relief to home and other loan borrowers who have long been waiting for their respective banks to slash rates. It, however, has to be seen how banks respond to RBI rate cut and whether they pass on this benefit

RBI Cuts Repo Rate by 25 bps: What should homebuyers do now?

In a widely-anticipated move, the Reserve Bank of India (RBI) has announced a 25-basis point (bps) reduction in the repo rate, marking a significant step to ease borrowing costs and stimulate economic growth. The decision, unveiled by RBI Governor Sanjay Malhotra on Friday, February 7, follows extensive deliberations by the Monetary Policy Committee (MPC). The