Trump will bring good luck to Indian investors, global brokerage firm claims there may be a rally in the stock market – Read

Everyone’s eyes around the world are on the results of the US presidential election. Trump is moving towards victory in the US presidential elections. Most exit polls are pointing towards Trump becoming President. If Trump wins the US presidential election, it can prove to be good luck for Indian investors. This prediction has been made not by us but by a global brokerage firm. Let us know what gifts the people of India can get if Trump becomes the President.

Trump will bring good luck to India

Global brokerage firm Emkay Global believes that if Republican Party candidate Donald Trump wins the US presidential election, then the Indian stock market may see a short rally for a few days. Indian investors can benefit from this. From the stock market perspective, Trump is a strong candidate.

According to the brokerage firm’s estimate, Trump’s victory may increase tariffs on China, which will indirectly strengthen the sentiment towards India. Besides, this may also reduce the foreign investments going towards China and they may return to India. Trump’s victory is also important because in the month of October, foreign investors made record withdrawals from stocks. In the entire month of October, FIIs have withdrawn approximately $11.2 billion from the Indian stock market. One of the biggest reasons behind the withdrawal of FIIs from the Indian stock market is said to be the uncertainty related to the US Presidential elections.

China will suffer loss

According to Emkay Global, if Trump wins, China’s stocks will suffer losses. India will benefit from this because Trump’s victory will be strategically positive for India and FPI investment in the market will increase. The brokerage also said in its report that its equity strategic team believes that Trump’s victory may lead to a short-term rally. The sustainability of this rally depends on earnings growth and valuations, both of which are weak at the moment.

According to the brokerage firm, if Kamala Harris wins, a new wave of selling in the stock market may be triggered. The report also says that if Trump becomes president, the biggest challenge will be the tariff rate. Although their biggest target is to stop China’s exports, its impact can be seen in India also. The impact of the US election results can also be seen first on the foreign currency market.