Everyone has an eagle eye on the current financial situation in the global economy. The impact of elections in the United States of America on the global economy has been predicted by many experts. It is quite obvious that these elections must have a wider impact on the global market.
In this article, few sectors have been selected for the review for which this election played a major role.
This is the first time in the history of America that more than 160 million people have voted in an election. Of these, Joe Biden has received more than seven and a half million votes, while Donald Trump has received about 70 million votes. Both Donald Trump and Joe Biden have set records according to the number of voters. By acquiring 290 Electoral Votes, Joe Biden became the elected President of the US and now he will be sworn in as the 46th President of the US on January 20 next year.
Ever since the election has ended in the USA, everyone’s eyes are on how the global market will get benefited from it. Because now Trump is not there, but now Biden has come in his place, now all the policies will be decided by his own. The United States of America is one of the big countries whose every step affects the world to a great extent.
That is why everyone’s eye is on the effect of elections on the global market but The Axis Asset Management report said,
“Apart from elections, many more factors can affect the markets, such as valuation, interest rates, inflation etc.”
Biden’s win could have a major impact on sectors like renewable energy, education. The economy of the whole world along with America has been badly affected due to the Coronavirus epidemic. The impact in the US elections will not only affect the US but also India. There are a large number of Indians in America who are contributing to the development of America in every way. Engaged in IT, Business, Pharma, Research & Development.
In the opinion of some Chinese equities, the impact of the election will be less on Asian assets. However, select investors are also suggesting a traditional hedge. For example, the yen (Chinese currency) and gold can be bought. Even if there is a huge loss, investors will be less likely to lose.
IMPACT ON INDIA
The politics of America affects the whole world. There has been a change of power in America now. It is not possible for America to ignore India. The friendship between India and America is very important for human welfare. The impact of Biden’s election in the US is visible in the domestic stock market. Both the Sensex and the Nifty have set new record highs, breaking all their previous records. With the victory of Biden, the BSE Sensex reached a new high of 42,534, leaving behind its old record high of 42,273. At the same time, the Nifty broke its previous record high of 12,430 and reached 12,445. According to the stock market experts, the arrival of Biden will benefit the country’s IT sector companies. After Biden’s victory, the partnership between the US and India will increase. New dimensions of increasing trade partnership between India and America will open. America will have full cooperation against terrorism in India. India’s economy will also be positively impacted.
Biden’s win also led to the gold price rise on MCX. The Sensex gained 605.80 points to settle at 42,498.86 in early trade, while the Nifty was trading 168.50 points at 12,432.05. At the same time, the rupee also stands strong against the dollar. According to Indian experts, Biden’s victory will have a positive effect on India. It is not a matter of much concern and from the initial signs of the market, it seems that there is news of relief for India.
Biden may also take a soft stance on the issue of immigration and H1b Visa. During Donald Trump’s rule, it became very difficult for the people of India to get a US visa and take citizenship there. Biden once again can make it easier. Joe Biden’s attitude in this regard is largely moderate. They are in favor of the relaxation of visa rules. This can also facilitate the movement of Indian professionals in America. IT companies can benefit from this.
Once he had also said that the people on the company visa have built America. The business will increase between the two countries.
Now India-US relations will be further strengthened. The business will increase between the two countries. Indians will also benefit from the H-1B Visa and Green Card Scheme. The fight against terrorism may weaken.
IMPACT ON AMERICAN ECONOMY
The major US stock indices recorded the largest weekly increase since April this week. Investors were hopeful that Biden would win and the Republicans would occupy the Senate. Most experts consider Biden to be good for the market. The American economy has recorded the strongest recovery so far after the Coronavirus has hit record levels in the US economy. It grew at 33.1 percent in the third quarter. During the Coronavirus epidemic, the US economy recorded a steep 31.4 percent fall in the April-June quarter. In the first quarter, it was down by 5 percent.