Manish Bandhari, Founder, CEO & Portfolio Manager at Vallum Capital Advisors, said: “With Trump’s presidency, India could see renewed Foreign Portfolio Investment (FPI) inflows as trade and economic alignment strengthen. Despite past trade skirmishes, both nations have built a robust partnership, with the US seeing India as a strategic counterweight to China.”
Bandhari further elaborated: “Trump’s win is set to benefit multiple sectors. The housing and energy sectors, including coal, thermal projects, nuclear projects, and oil drilling companies, are poised for growth in the US. Discretionary tax cuts may drive higher consumer spending, indirectly benefiting Indian exporters. Both the US and Indian IT sectors stand to gain from increased IT investments.”
Sectoral Indices and Stock Performances
Among sectoral indices, the Nifty IT index surged 4 per cent, while Nifty Realty and Oil and Gas gained nearly 3 per cent each. Stocks like Bharat Electronics Ltd, Adani Enterprises, TCS, Wipro, Infosys, Tech Mahindra, and HCL Tech led the gains in the Nifty50 pack.
Chinese Markets Feel the Impact
While Indian and Japanese markets welcomed Trump’s win, Chinese markets suffered losses. The Hang Seng Index dropped over 2 per cent on Wednesday, the Shanghai Composite closed marginally lower, and the CSI300 Index of blue-chip Chinese stocks fell by 0.5 per cent.
Experts anticipate renewed trade tensions. During his campaign, Trump pledged to raise tariffs on Chinese imports, potentially implementing a 60 per cent tariff on top of the 25 per cent already levied during his first term. This could weigh heavily on China’s economic outlook.
