Editor’s Note
As Donald Trump returns to the White House, investors are assessing the potential impact on Indian markets. This report examines five key areas where his policies could create both pressure and opportunities.
Following the 2024 presidential election, Donald Trump has re-entered the White House, and now investors in the Indian stock market are busy analyzing the potential impacts of this change. After his second return as US President, activity could be seen in several sectors of the Indian stock market. Due to Donald Trump’s protectionist outlook and trade policies, pressure could be felt on Indian markets along with potential benefits in some sectors. In this report, we will focus on 5 key aspects that could be important for Indian investors.
Due to Donald Trump’s protectionist outlook and energy policy, renewable energy sources in Asia (Trump 2.0) could be impacted. Due to policies promoting fossil fuels in the US, Indian solar and other green energy companies could face pressure in the coming week. American oil companies like Exxon Mobil could benefit from this, but a slowdown in the direction of green energy could be seen.
Trump’s trade wars and tariff policy could lead to instability in Asian economies, but experts believe that during this period, some companies in the defense and technology sectors could benefit. This could be a golden opportunity especially for Indian defense companies.
Trump’s protectionist tariff policy (Trump 2.0) could put pressure on export-oriented companies. Export-oriented sectors like India’s Information Technology (IT) and textile industries could potentially be affected. Experts say investors should avoid fresh investments in large IT companies and other export-oriented companies. However, this effect will become clearer over time, but it could be a challenging time for export-oriented companies.
Due to Trump’s strict immigration policies (Trump 2.0), the flow of technical talent could shift towards Asia, which could lead to the development of regional innovation hubs in countries like India, Singapore, and South Korea. This change could benefit Indian fintech companies.
Due to increased tension in US-China trade (Trump 2.0) relations under Donald Trump, companies could shift from China to countries like India, Vietnam, and Indonesia. If more obstacles arise in trade relations with China, the development of the manufacturing sector in India could accelerate, leading to growth in infrastructure, transportation, and especially the railway sector.