Donald Trump's Win: Impact on Indian Stock Market, Economy!

Market analysts say Donald Trump's probable win in the US presidential election has invited mixed responses about its implications on the Indian economy and also domestic equity markets. While this would lead to increased spending in the US with higher inflation, a stronger dollar, and higher trade barriers may also be expected.

Positive Impact on India

Equirus Economist Anitha Rangan said a decisive election result will ease market volatility that had gone berserk trying to predict the outcome. It should also work well for India because of its robust trade ties with the US. Benchmark equity index BSE Sensex has already given positive cues, increasing by 682 points or 0.86% to reach 80,159.

Rangan believes that the reversal could occur because of the present outflows by FIIs considering India enjoys inherent strength, and the constructive relations that the country is enjoying with the US and Trump may result in positive outcomes for the country in the medium to long run.
Challenges Ahead

However, such a government under Trump may dramatically change trading dynamics. More tariffs and protectionism on international trade by the new government may affect sectors like pharmaceuticals and information technology.

It had nearly doubled over the past decade to $77.53 billion. Importantly, the focus of US President Donald Trump on making the US trade deficit-free by increasing import tariffs has the potential to hurt both Indian generic drug manufacturers and the IT sector.

Also read: Donald Trump's Victory Speech, Watch Live: US Election Results