New Delhi. The stock market, which has been affected by selling throughout the month of October, is also witnessing heavy selling today (November 4, 2024). There is also a connection somewhere with the current elections in America. On one side is Donald Trump and on the other side is Kamala Harris. If any of them wins, it will definitely impact India. The stock markets have also started to react to this. It is assumed that a victory for Republican Donald Trump could be positive for the stock markets. On the contrary, if something goes wrong or his victory is hindered in any way, it would be negative news for the stocks. Let us tell you that there was heavy selling in the Indian markets on the first day of the month at 10:47 am. Nifty50 had fallen by nearly 380 points (1.55 percent) and Sensex by 1,138 points (1.43 percent).

Speculators currently rate the chances of Donald Trump’s victory as high, but MK Global sees the possibility of continued instability. MK Global believes both Trump and Kamala Harris can achieve similar results in key areas, but warns of increasing instability in global inflation and development. If the Democratic Party wins, demand and sales could increase, while the Republican victory could boost the market in the short term, depending on the increase in income. The same firm believes India could face challenges regardless of the outcome, particularly with regard to foreign exchange and tariffs.

What will happen if Trump comes to power?
MK Global has stated in its latest report that with the arrival of Donald Trump there will be corporate tax relief and a reduction in the regulatory burden. If the opposite is true, the situation will be worst for US spending, which could prove positive for bonds.

Also Read – FII sold shares worth Rs 14000 crore. Will the market fall this week? These 5 things determine profit and loss

The report said: “Although a Trump presidency would bring more noise and instability, we believe a Harris presidency would not be much different in some key areas.” “There is likely to be significant volatility in global inflation over the medium term and global growth, which means traditional investment strategies such as “buy the dip” or “time rallies” need to be reconsidered.”

MK said, “If there is a decline in the US, the impact of the rise in US stocks could also be visible in the Indian market… However, the Chinese market will fall due to uncertainty, posing a major threat to FPI.” (Foreign portfolio investment) for India.” Can be beneficial from this point of view. But sustaining this rally will be challenging at global and domestic levels. “Our equity strategy team believes the red punch could provide near-term upside, but its sustainability will depend on earnings strength and valuations, which are currently weak.”

What if Kamala Harris wins?
On the other hand, if there is a Democratic victory, it could trigger a new round of selling and a 5 percent decline could create a buying opportunity. MK says it will not have a major impact on the Indian economy and market. The coming of democratic or republican rule will not make much difference to India’s situation in the medium term.

Also Read This – The shine of gold will remain in the new Samvat, how far will the price go? To know

MK Global said: “From a geopolitical perspective, it is a challenging time for India in its relations with the US.” The nature of the challenges depends on which candidate wins. Harris’ victory is likely to be a continuation of Biden’s policies, although his position is not yet entirely clear. Some immediate problems may also arise due to recent developments related to Khalistani extremists.

If Trump becomes president, tariffs will be the biggest challenge. Although the main target is China, it may also affect India. Additionally, the impact of Trump’s “America First” policy is still unclear, as MK Global noted.