Trump's election win raises concerns over trade and fiscal policies, warns Nuvama
Donald Trump’s recent victory in the 2024 U.S. Presidential Election has raised concerns about potential changes in trade and fiscal policies. Nuvama Institutional Equities highlights that Trump may adopt a more aggressive trade stance, expanding targets beyond China. The report suggests that Trump could implement tax cuts or increase spending, which may lead to a larger fiscal deficit. This situation is complicated by the current high level of U.S. sovereign debt compared to 2018. Nuvama warns that aggressive policies could strain the global economy and negatively impact India's exports. Increased market volatility is also anticipated due to elevated valuations and slowing earnings momentum.