CLOSE X
Algo Trading
Home

Blogs

Stock Market Blogs

U.S Elections and its effect on Indian market November 07 2020U.S Elections and its effect on Indian market

Visit Count: 272

Republican candidate Donald trump and democrat candidate Joe Biden without a doubt this has to be the most tightly contested elections in the US that too in a highly polarized environment. The uncertainty of who will lead the most powerful country in the world for the next 4 years is truly turning people into serious discussion especially the investors who have turned themselves on their toes. The counting of the votes has thrown up an inconclusive verdict as of now. A candidate to be elected as the president of the U.S, he or she requires a minimum of 270 seats in Electoral college.



Under the American model of election, the people do not directly cast a vote for their candidate, instead they cast a vote for electoral member from each state who represent the respective parties and respective presidential candidate. And these electoral members who get elected they become part of the electoral college which in turn elects the president on 14th of December. The results of the 2020 US election are yet to be announced, but media reports suggest that Biden is leading Trump in the overall voting tally for the Electoral College.

Things may change as the margins in several battleground states are narrowing. Yet, Trump has moved the tribunal over the ballot counting process in three states.

Effect of U.S elections on Indian market.

It may not mean a significant policy change or a tax increase if Biden wins, which could have occurred in the case of a ''Blue Wave''. Because Republicans are likely to hold on to the Senate, the presidential race of Biden may not bring policies that could undermine large technology companies or bring about drastic policy changes.

The victory of Biden is most likely to be a favorable outcome for markets because, by reducing political uncertainty, it will inculcate confidence among investors. In addition to the presidential election, investors have been keeping a close watch on the House and Senate total seats.

If Biden wins, you can expect Big Tech to face greater regulation and / tax scrutiny, which means a potential hiccup for Indian IT, while pharmaceutical firms may benefit from increased government spending, a boon, but could have higher price concessions for Indian businesses.

We could have a subsequent stock market rally and a stronger US dollar if Trump resumes the presidency, as investors would be satisfied with the fact that US corporate taxes will stay low. Trump''s victory on the commodity front would translate into a weaker tone for precious and base metals, with non-ferrous complexes being the most vulnerable, weighed down by the possibility of increased trade tensions with China.

For India, who wins does not make any materialistic difference in the long run, but in the short term, along with chemicals and tiles, a Trump victory is likely to help IT, whereas a Biden presidency will be better for pharma. For volatile assets, like emerging markets (EM) currencies, Biden''s victory is favourable.

Brokerage firm Centrum Broking pointed out that it seems that there will be no majority in Congress, i.e., looking at the ongoing trends. A majority in the House is likely to be won by Democrats, while the Republicans are likely to gain control of the Senate.

 

 

COMMENTS
Categories
Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201
INDIRA COMMODITIES PVT. LTD. CIN : U65921MH1995PTC089399

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Manoj Bhandari. Email: complaint@indiratrade.com. Call : 0731-4797275