US ELECTIONS – HILARY’S WIN

After eight years of Obama’s ruling at the world’s largest economy, all eyes across the globe are eager to see who will be his successor. The fight, which started with several contenders to the US’ Presidential Candidature, has narrowed down to just two. It is now clear that the elections will be contested as – Hilary versus Trump. The key event, which will take place in November 2016, is likely to bring in a lot of implications in general to the world and in this context to the Indian markets. There are a set of sectors, which may be affected from Trumps win and are likely to benefit from Hilary’s victory. If Trump Wins: Trump is anti outsourcing and is protective. Hence, if he emerges as President of USA, this will be a big negative for Indian exporters such as IT and Pharmaceutical sectors. If Hilary Wins: Hilary’s win is likely to become as a breather to Indian exporters particularly IT and Pharmaceutical sectors, as her policies are far liberal than Trump. The biggest positive in Hilary’s win for these sectors is escape from Trump’s protectionism. Hence, if Hilary becomes the President of the USA, it is likely to be sentimentally positive for Indian IT and Pharmaceutical sectors. Stock Selection: Top tier IT and Pharmaceutical companies in India, which form a part of NIFTY and more than 25% of whose revenues comes from the US.