Sectors and Stocks in focus as Donald Trump is set to become 47th US president | Stock Market News

Stocks to Buy: Donald Trump is set to become the 47th President of the United states of America.

The impact of the outcome of elections is likely to be felt on trade policies, foreign investment and currency movements. 

Impact on Markets- The markets rejoiced with Nifty and Sensex gaining cose to 1%. Experts as Deepak Jasani , Head of retail Research as HDFC Securities said that the outcome of the US presidential Elections is positive for the market in near term and apart from China, most Global markets may see positive traction with some volatility in Europe.

Nifty saw a strong recovery from the 23800 level, with 24650 as an immediate hurdle. Above 24650, the 25000-25200 zone is a critical resistance area. Immediate support is at 24040, with further support at 23800, said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd

Bank Nifty is outperforming, with an immediate resistance zone at 52300-52600. Above 52600, the next target levels are 53300, followed by 54000-54500. Immediate support lies at 51800 and 51600, with strong support at 51000 as per Gour

Treasury Yields- The Trump card possibility could lead to the rise of the UST 10Y yields which would, most likely, have a butterfly effect resulting in the rise of the Indian 10Y benchmark yield to above 6.90%, said Shrisha Acharya, Vice-president, Anand Rathi Global Finance.

Currency: The Indian rupee depreciated , it was the dollar that strengthened. The dollar can remain firm with Trump coming to power. The lower crude prices and a positive trend in domestic equities and lower global crude prices however will be supportive for rupee.

Crude Oil_ The Crude oil corrected with Brent Crude falling 1-2% to $74.5 a barrel levels. The crude may remain range bound as Trump may lead to oil exploration and Production activities catching pace.

Oil Marketing companies– Oil Marketing companies as Bharat Petroleum Corporation, Indian Oil Corporation and Hindustan petroleum Corporation may be key beneficiaries if crude price remain lower.

Energy_ A Trump victory might also result in more energy cooperation, especially given India’s expanding energy requirements. The details of Trump’s policy and India’s response will determine the overall effect said analysts 

Export sector. While stronger dollar is positive for exports, analysts are of the view that America First” approach to trade policy, a Trump victory might have a big effect on the Indian market. Increased tariffs and protectionism could result from this, which could hurt India’s exports to the US., said Gour

Information Technology- The win of trump is not looked at in positive light for the technology sector. A Trump government may be less enthusiastic about the commercial connection between the US and India, which might have an impact on collaboration and investment in fields like technology and defense, said Gour.

Chokkalingam G Founder, Equinomics Research Pvt Ltd, expect consolidation in the IT space to continue and we could see some more mergers and acquisitions activities.

Domestic oriented sectors better places

Domestic oriented sectors are better placed feel analysts. While Automobiles, FMCG and Cement may see single digit growth. Banks, Infrastructure and Pharma are better placed said Chokkalingam. Tyre manufacturers could be better placed in terms of earrings growth with decline in natural rubber prices and also crude prices remaining rangebound

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

here are sectors and stocks to focus.