A report by Angle One Wealth highlighted that Donald Trump’s victory in the US presidential elections is set to boost the stock market. The report highlighted that Trump is seen as a pro-market leader, a stance likely to be met with optimism in both US and Indian markets.
“Trump is considered pro-markets, so the victory is the cherry on the cake,” stated the report, underscoring a sentiment that could drive investors’ confidence.
The report also added that Indian stock markets, in particular, are anticipated to respond with short-term enthusiasm due to the “China+1” strategy, where global companies seek to diversify their manufacturing base beyond China. This trend has significantly benefited Indian markets in recent years.
“We believe this is likely a sentimental effect of India benefitting from the “China+ 1″ strategy. History has indeed shown success in electronic goods (especially mobile phones assembly) and chemicals in the last round of tariffs”, said the report.
The report also highlighted that sectors like electronics, especially mobile phone assembly and chemicals, showed resilience and growth when tariffs were previously imposed, positioning India as an alternative manufacturing hub.
On Trump’s return, India’s preparedness for such opportunities has grown due to several government initiatives to boost exports and manufacturing capabilities. Programs like the Production Linked Incentive (PLI) scheme, ‘Make in India,’ tax holidays, and a dedicated semiconductor program have all fostered an export-friendly environment. This groundwork could enable India to capitalise on the current global economic shifts.
The report said, “India is more prepared today, having taken many export-friendly decisions in the last few years”.
Sectorally, the report pointed out that Indian defensives like IT and pharma might see a particular upside, as Trump’s victory could strengthen US growth. The Indian IT sector may benefit from increased service demand, potentially through Global Capability Centers (GCCs) operating in India.
Meanwhile, the pharmaceutical industry could witness more significant demand for generic drugs under US government programs, enhancing export potential. Domestic-focused sectors, such as FMCG, may continue to offer stability to investors, driven by a steady rural growth story in India. Private banks, too, are poised for success, thanks to favourable domestic conditions, including higher returns on equity (ROEs) and attractive valuations. The report added that these factors offer promising opportunities for Indian stocks across various sectors.
