Quote on impact of the US elections on the Indian markets by Vinit Bolinjkar, Head of Research, Ventura
Below the Quote on impact of the US elections on the Indian markets by Vinit Bolinjkar, Head of Research, Ventura
“The Democrats’ sweep of both chambers of Congress could be a near-term positive for Indian equities, as checks on abrupt US policy changes improve risk sentiment. The clearest opportunity is lower oil: Brent’s 8.7% decline on November 4, amid hopes of easing Iran tensions, should support fuel- and crude-linked cost structures at IndiGo, Asian Paints and CEAT, while potentially aiding BPCL and HPCL’s marketing margins. Conversely, sustained lower oil prices could weaken realisations for ONGC and Oil India. Softer US yields and a weaker dollar may also support the rupee and foreign portfolio flows. However, tariffs and immigration restrictions remain partly within presidential authority, so export-oriented textiles and IT services companies such as TCS and Infosys cannot assume immediate relief. Pharmaceutical exporters also face US pricing-policy uncertainty. We favour selective domestic cost beneficiaries over a blanket election-driven rally, with crude prices and policy follow-through the key variables.”
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