What will Trump's win mean for Indian investors? Vinod Karki answers
«It is not as if everyone will get impacted because there will be shifting channels, because he wants to put more tariffs towards China and some other countries, so some other countries might benefit,» says Vinod Karki, Head of Strategy, ICICI Securities.
It seems like Trump will definitely win the US elections. So, how do you see that impacting the Indian markets? Which sectors could benefit out of this? Which sectors stand to lose the most because of this change in US presidential candidate?
Vinod Karki: This will be some kind of change some kind of direction in the market, I guess because if you remember, we were looking at a rate cut cycle. If you observe the markets, the bond yields in the US have risen almost 80 bps from September lows, 3.6, and now it is around 4.4. So, it is clearly indicating that the policies of Trump will be kind of inflationary in the sense tariff hikes and immigration rules and the tax cuts. And in the previous tenure, the fiscal deficit in the US under Trump really rose because of his policies.
So, that is one factor so that will play. And obviously, this protectionism policy of protecting the domestic economy by raising tariffs across the board, we will have to see the final details, but as a broad policy it seems that global trade will have some impact.
It is not as if everyone will get impacted because there will be shifting channels, because he wants to put more tariffs towards China and some other countries, so some other countries might benefit. But overall, it has an impact on
