The victory of Donald Trump in the US presidential elections is expected to have a positive impact on the stock market according to a report by AngelOne Wealth. Trump is viewed as a pro-market leader, which is likely to boost investor confidence in both the U.S. and Indian markets. In particular, Indian stock markets are anticipated to see short-term enthusiasm due to the “China+1” strategy, where global companies are looking beyond China for manufacturing opportunities, benefiting Indian markets. Sectors such as electronics, mobile phone assembly, and chemicals have shown resilience and growth in the past when tariffs were imposed, positioning India as an alternative manufacturing hub. India’s readiness for such opportunities has increased due to government initiatives aimed at boosting exports and manufacturing capabilities.
The report highlighted that India has taken several export-friendly decisions in recent years, making the country more prepared to capitalize on global economic shifts. Programs such as the Production Linked Incentive scheme, ‘Make in India,’ tax holidays, and a dedicated semiconductor program have all contributed to creating an export-friendly environment in India. This groundwork could position India well to benefit from the changing global scenario brought about by Trump’s presidency.
Sectorally, the report mentioned that Indian defensives like IT and pharma could see significant upside from Trump’s victory. The Indian IT sector may benefit from increased demand for services, particularly through Global Capability Centers operating in India. The pharmaceutical industry could also witness greater demand for generic drugs under U.S. government programs, boosting export potential for Indian companies. Domestic-focused sectors like FMCG are likely to offer stability driven by steady rural growth in India, while private banks could see success due to favorable domestic conditions and attractive valuations.
Overall, the report suggested that Trump’s victory presents promising opportunities for Indian stocks across various sectors. The pro-market stance of the U.S. president-elect and the growing trend of diversifying manufacturing beyond China could benefit Indian markets in the short term. With India’s readiness to capitalize on such opportunities and the favorable initiatives taken by the government, the country is well-positioned to benefit from the current global economic shifts. Investors should keep an eye on sectors like IT, pharma, FMCG, and private banks, as they are likely to offer potential upside in the coming months.
