US Election 2024: How will Donald Trump’s win impact the Indian stock market? Chris Wood shares his views

Chris Wood, Global Equity Strategist of Jefferies, believes Donald Trump's return as the US President will be positive for equities.

According to CNBC-TV18, Wood believes that Trump's first action would likely be to extend the tax cuts, which would be positive for equities. Moreover, Trump may take steps to resolve the Ukraine-Russia conflict, which should lead to a drop in oil prices, the CNBC-TV18 report added.

"From a US perspective, Donald Trump will be positive for equities because his first step would be to extend the tax cuts. My guess is Trump would lead to a weaker dollar," Wood told CNBC-TV18.

Wood was speaking at a market town hall conducted by CNBC-TV18.

Wood said that India is the best long-term equity market in the world. Among emerging markets, India remains a great domestic demand story, he told CNBC-TV18.

Wood highlighted the beginning of the equity culture in India as a positive factor.

"Emerging saving schemes which courage equity investments is a long-term positive story, but in recent months, there has been growing retail participation as well," Wood said.

Highlighting the risks for the Indian stock market, Wood said some of the stocks are at very high valuations, and there is a risk of earnings disappointments.

H said India's bull market is nowhere near its end. He pointed out that India is witnessing the repeat of a cycle seen from 2002 to 2009, which began with an upturn in the property market, which was not undone by the monetary tightening cycle and moved into a broader capex cycle.

“This time, we have come out of a seven-year property downturn, and now we are probably in the third year of property upturn. We have seen the monetary tightening cycle in India, which has not derailed the property upturn. We are now witnessing a pick-up in private-sector investments. The difference between this cycle and the last cycle is that we have a huge government capex cycle, which was not the case before 2002-03,” Wood told CNBC-TV18.

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