Investors are keeping an eye on the stocks of Indian IT companies and pharma companies in the wake of the US elections, because only the tech and software companies along with pharma companies have been the top performers in the stock market.
The US Presidential Election will be held on 3 November. Whatever the outcome of this election, Donald Trump will become the President of the United States or the head of Joe Biden, who is crowned President, it is bound to have an impact on Indian companies and the stock market. In the wake of the US election, investors are keeping an eye on the stocks of pharma companies along with Indian IT companies, as tech and software companies along with pharma companies have been the top performers in the stock market in this era of corona virus epidemic. Experts say that the result of the US presidential election will affect these companies in the form of taxation, trade and immigration policies.
However, Switzerland’s brokerage and investment banking firm UBS Group says that whatever the outcome of this election, its biggest advantage in the Asia Pacific region is going to be for India. UBS said, “If Joe Biden wins in the election, or wins Viden and gets the Congress divided or Trump wins, only India will benefit in these three situations.” A study by UBS published last month said that spending on trade and foreign policy, US Federal Reserve policy and infrastructure have been assessed to reach this conclusion. At the same time, Bloomberg said based on its data, the Indian stock market index has lost an average of 2.1% in five sessions each time since the last five US presidential elections.
These stocks of IT sector will be under watch
Given the US election, investors in the IT sector companies such as Tata Consultancy Services (TCS), Infosys Ltd (Infosys Ltd), HCL Technologies (HCL Technologies), Wipro and Tech Mahindra will be under the watch of investors. This is because the Information Technology index on the S&P BSE has seen a jump of 36% this financial year and IT sector companies outperformed the pharma sector in 19 sectors.
Focus on these stocks in the pharma sector
Pharma companies have performed the most strongly this financial year in the Indian stock market. The Healthcare Index of S&P BSE has recorded a phenomenal growth of 45% this year, outpacing all 19 sectors. In the pharma sector, the companies whose shares are under the eye of investors include Sun Pharmaceutical Industries, Dr. Reddys Laboratories, Cipla Ltd, Lupine Pharma, Lupine Pharma, Aurobindo Companies such as Pharma Ltd) and Alkem Laboratories.
These companies in the auto sector keep an eye on
If the economy improves after the US presidential election, then the demand increases, then the automobile companies of India will also benefit. A report by Citigroup says that the US trade war with China will benefit Indian auto exporters. Investors in the sector whose stocks are on the list include Tata Motors Ltd, Motherson Sumi Systems Ltd, Balkrishna Industries Ltd and Barat Forge Ltd .
Indian companies will be affected due to these reasons
The Trump administration in America has given priority to the jobs and salary of the American people. For this, he tightened the visa rules. This made it difficult for Indian IT companies. Citigroup said that if Joe Biden wins, his attitude in this regard is largely moderate. They are in favor of relaxation of visa rules. Apart from this, Wizens can also give some relief in tax and the movement of professionals in America can also be smooth. In such a situation, Indian software companies can benefit. But the announcement of a large stimulus package by the Democratic Party may weaken the dollar and benefit the rupee. This may reduce the earnings of IT companies.
Axis Securities Ltd CEO B Gopal Kumar said that amid tensions from China, the US has announced a reduction in dependence from China for medicine. Whether Trump wins or Biden America is working on a new health plan. It involves talking about the production of medicine in the US and finding alternatives to China. In such a situation, America is looking towards India for medicine. This is a golden opportunity for Indian pharma companies to establish a foothold in the US.