Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Global Markets Tumbles on Trump's Victory
Thu, 10 Nov Pre-Open

Global markets are facing some serious pressure. Markets were favoring Clinton as a status quo candidate. She was looked as a safe pair of hands for the world economy.

However, it turned out the other way. This has triggered massive uncertainty across the world.

The global economy is witnessing a threat of moving towards a closed economy.

Brexit, Europe migration crises and now Donald Trump.

Donald Trump's stance on Trade & Globalization, Social security, and Jobs & Income is daunting the world economy.

What is there for the Indian Markets?

Indian markets tanked yesterday. Both BSE-Sensex and NIFTY were down 1.2% and 1.3% respectively.

There are some of key things to look out for which will impact the Indian markets:

  • Jobs & Income - US is expected to curb the immigration and slash imports to create jobs. This is expected to impact various sectors (such as IT, Pharma) across the world.

    Trump terms H1B visa program as unfair. Indian IT stocks and IT companies will be impacted.
  • Trade Agreements & Globalization - Mr. Trump has a very strong view on free trade. This could initiate a trade war and dent the world economic growth.

    It could lead to re-negotiation of all the foreign trade deals which will affect the treaties with India.
  • Taxes - There could be decline in the tax rates from 35% to 15% in the US. This can result in companies like Ford, General Motors and Microsoft rushing back to US.

All these things have created uncertainty and that has resulted in the volatility. This could continue for some time.

However, we think the volatility will be good in the short run. In the long run, the market would mirror the performance of the Indian economy.

Further, the above move should not have any marked change in your investment approach. The principles of stock selection still remain the same: buying fundamentally strong companies, run by a competent management team and available at reasonable valuations.

Meanwhile, we would certainly keep you posted about whether our views on companies and sectors warrant any significant change on the back of the above development. So stay tuned and do keep an eye out for updates from our end.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Global Markets Tumbles on Trump's Victory". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 21, 2018 12:47 PM