WHAT TRUMP 2.0 MEANS FOR INDIAN INVESTORS

Some domestic sectors are expected to gain from Trump’s stated policy stance. Here’s how to reposition your portfolio

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Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make."

-Donald Trump, The Art of the Deal

ACCHE DIN: IT EDITION

Trump's major economic policy promises in this election were a blanket increase in tariffs (with additional levies on Chinese imports), lower corporate and individual taxes, and tightening of immigration.

There's often a wide gulf between campaign rhetoric and policy implementation.

Even then, decoding Trump's policy statements is a job more suited to clairvoyants rather than macroeconomic forecasters.

"Assessment of the impact of Trump's victory on Indian markets will be very premature at this stage. The markets are preempting at this point in time the probable policies to be adopted by the Trump administration based on the experience of his past tenure and the statements made during the election process," Ajit Banerjee, president and chief investment officer of Shriram Life Insurance, told Mint.

That said, some domestic sectors are expected to gain from Trump's stated policy stance.

The first is the Indian IT sector, which stands to benefit not only from higher US economic growth and the resultant increase in tech spending by American firms but also a stronger dollar.

The US dollar soared toa four-month high on 6 November, weighingon most emerging market currencies, including the Indian rupee. The rupeehashit anew lifetime low of 84.37 against the greenback, with many analysts projecting it breaching the 85-mark soon. A depreciating rupee is a tailwind for exporters like Indian IT firms, whicheama significant portion oftheir revenue indollars.