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Below the Quote on US Election by Anitha Rangan, Economist, Equirus

"The early results suggest that Donald Trump is leading the race (95-35), although any winning candidate would need at least 270 seats to call it a day. Going by the early results DT’s victory could likely result in more spending in the US, which could translate into inflation remaining somewhat elevated. At the same time, it would also mean stronger dollar but more trade barriers. However more than who wins, a clear result will be more of a relief to the markets which have been on a volatile mood predicting the outcome. This could translate positively for India as India’s trade relations with the US remains robust. Furthermore, clarity on the results will also be constructive to restrict volatility and return to fundamentals. On this note, India’s fundamental strength remains strong. The correction or adjustment led by outflows seen in the last one month should therefore reverse. On a medium to longer term, positive outcomes should emerge from the constructive relations India has with both USA and Donald Trump. Currency adjustments can well be managed with the reserves India has built. The only caveat could be that the US rate cutting cycle could be slower than anticipated which could also translate into a shallow rate cutting cycle for India. However, recall that India’s rate hikes were only half of what US hiked. So India has sufficient elbow room from the interest rate space as well with growth remaining resilient."

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