The market mood seems to be improving before the presentation of Union Budget 2025. On January 20, the markets opened in the green. Then due to good buying, Sensex and Nifty rose by 0.80 percent in the afternoon. This rise in the Indian stock market before Donald Trump becomes the President of America is encouraging. The reason for this is that Trump is going to sign hundreds of decisions as soon as he becomes President. The impact of some of his decisions can be seen on the stock market in India. To know about this, Moneycontrol spoke to Abhijeet Bhave, CEO of Equireal Wealth. Bharve has more than 25 years of wealth management experience.
Bhave said that Trump’s focus will be on American interests. He can adopt the policy of ‘American First’. He can make changes in trade related agreements and tariffs. He can also announce to make immigration rules stricter. He had already hinted about this before taking the oath of office as President. If the new US government changes the rules of H1B visa or takes a major decision regarding tariffs, it will impact Indian companies. Especially Indian IT companies and those companies which export more will be affected. But, since India is working on diversification of its export market and increasing domestic manufacturing capacity, it will not have much impact.
Which announcements of the government in the Union Budget can excite the stock market? In response to this question, he said that the eyes of the market are on the target of capital expenditure. Apart from this, the government can announce special schemes for sectors like renewable, infrastructure and manufacturing. Here, income taxpayers are also expecting tax reduction to be announced in the budget. If these expectations are fulfilled then the mood of the stock market may change. The government can also announce in the Union Budget to ease the rules for startups. There may be a scheme for privatization of government companies. If this happens then the stock market will regain momentum.