Indian Exporters Watch on as US Election Conundrum Settles Down
According to the data compiled by Bloomberg, the benchmark S&P BSE Sensex Index dropped an average 2.1 per cent in the five trading sessions after the last five US presidential elections
Investors are closely watching the pharma and IT stocks in the wake of US elections that certainly comes as a huge event for anyone operating in such a dynamic sector. Amid the pandemic, only India’s drug makers and software exporters have been the performing well in the equity market this year.
The US elections could have a bearing on the operations of certain sectors due to the changes in taxation, trade and immigration policies, besides currency movement. Some of the experts believe that there are many reasons to believe that India is going to benefit from the election, irrespective of what happens from now onwards.
According to the data compiled by Bloomberg, the benchmark S&P BSE Sensex Index dropped an average 2.1 per cent in the five trading sessions after the last five US presidential elections. However, it wouldn’t be wise to predict where the pendulum swings this time around.
Indian software exporters derive a large share of their business from the US, and Biden’s stance on protecting U.S jobs and wage has been moderate than that of trump, which bodes well for us. Other than this, currency movement could also spur gains in Indian currency with a weakening dollar.
On the healthcare front. India has witnessed a surge of 45 per cent this year. Around 80 per cent of the medical ingredients in the US come from India and China. So, any health plan cannot undermine the need of exports from these countries.
Any growth in the U.S economy would be a good news for the Indian exporters, but any curbs on the foreign products could impact the South Asian countries big time, although the chances of that happening are minimal under Biden.