All of us know and understand that stock markets can be thoroughly impacted by anyone and anywhere if they are influential enough. It would be fair to say that the current US president can always impact the markets around the globe. Therefore, it is important to understand how Donald Trump’s second term will impact you as an investor and your existing portfolio. One thing is for certain: Trump’s decisions, trade policies, and foreign policies are bound to impact India positively or negatively.
Following are some of the ways the Trump administration can impact the Indian stock markets:
Impact #1: Renewable Energy Might be Impacted
There is no point denying that renewable energy might be impacted, perhaps negatively. President Trump is a huge advocate for fossil fuels, as was evident in his first term. However, India has been moving towards green energy a lot. Therefore, this conflict of interest could be an interesting foray to explore. If this trend continues in his second term, a large number of Indian companies and their shares could suffer, as India has been pushing towards green initiatives.
Impact #2: Export Companies Will Have Mixed Results
Most export companies in India have the US as their primary destination. US imports as much as 18% of the total exports in a fiscal year from India. Depending on trades and tariffs Trump could impose on people and companies trying to export their products into the US, it could be a huge deciding factor for how the markets perform as a result.
Impact #3: Defense Sector Might Receive a Boost
In Trump’s first term, the Indian defense sector saw a huge boom in their finances as the US bought and invested in their own military. Trump’s second term could see this trend continue on. Therefore, the defense sector as a whole could see positive results overall. This US-India coalition could also prove to be a tactical advance to make certain that China does not attack either country.
Impact #4: Keep an Eye on Infrastructure and Rail
Donald Trump’s previous administration imposed a higher tariff bracket for goods and products imported from China. This forced many US-based businesses to make certain that they were able to diversify their supply chains to other countries. India was one such country that could gain profit from this. The “Make in India” initiative can thoroughly help enhance the possibility of setting up various manufacturing, infrastructure, and rail sectors. All these sectors could move to gain on the profits in these sectors.
It would be perhaps naive to assume that the decisions of the Trump administration will not impact the markets as they stand. However, at The Profits Manager, you can make certain that you are able to thoroughly understand how foreign politics can impact the policies and prospects of a certain share, your portfolio or the entirety of the market. You need to ensure that you are able to understand and keep up with US President Donald Trump to make certain that no moment in the market catches you off-guard. Ensure that you are able to enhance the possibility of understanding the intricacies of the market with the help of The Profits Manager.