Donald Trump has won the US presidential elections. This has had a major impact on foreign investors investing in India. He was already withdrawing from the Indian stock market, but with the victory of Donald Trump, such a thing happened that the Indian market became more involved. After all, where are the foreign investors (FIIs) taking their money and making a lot of money. Let us understand…
When the presidential elections started in America, foreign investors started withdrawing money from the Indian stock markets. Then in the meantime, the Chinese government issued booster packages for the economy and FII money started shifting there. Now that Donald Trump has won in America, a change is visible in it.
Impact of Donald Trump’s victory
With the victory of Donald Trump, it became clear that Elon Musk could get a big responsibility. This happened and now he has been made the head of the ‘Department of Government Efficiency’ (DOGE). Its effect is also visible in the cryptocurrency market. Apart from America and China, FIIs are shifting most of their money to Bitcoin. Meanwhile, the rate of Bitcoin has reached around $90,000.
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Now after the victory of Donald Trump, there is expected to be a change in the policy of the Federal Reserve, trade relations with China and the expenditure methods of America’s military operations. All this will once again impact the markets of emerging markets like India.
India’s stock market is changing
On one hand, FIIs have so far withdrawn more than Rs 1.40 lakh crore from the Indian stock market. At the domestic level too, changes are taking place in the country’s stock market. Small towns of the country are now becoming new bastions of investors. Domestic investors are continuously investing in the Indian market on a large scale. Apart from big cities like Delhi, Mumbai, Kolkata, Chennai, Bengaluru, domestic investors are also increasing in cities like Jaipur, Indore, Rajkot, Pune, Hyderabad, Ahmedabad, Patna. Data from Bombay Stock Exchange and National Stock Exchange show that on an annual basis, the number of domestic investors has increased the most in Bihar, Uttar Pradesh, West Bengal, Madhya Pradesh and Rajasthan.
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When will market conditions improve?
However, in the current situation, the question is whether the withdrawal of FIIs from the Indian stock market will cause problems for domestic investors. After all, how long can domestic investors expect market improvement? Regarding this, experts say that they will have to wait for at least six months.
Market expert N. N. According to Kaul, due to many simultaneous activities at the international level, FIIs are inclined towards China, America’s market and Bitcoin. China is making continuous efforts to accelerate the Shanghai Composite. At the same time, India’s stock market is still overvalued. Expert Arun Singh says that it will take some time but domestic investors will not have to face losses.
