Finally, U.S. administration has got its 46th President, Joseph Robinette Biden Jr. after a cut throat competition from Republican Donald Trump, which has cheered the atmosphere of White House and flooded the social media in the name of Democratic President in the house. The 46th U.S. President Joe Biden along with U.S. Vice President Kamala Harris has cleared well that they will fight the ongoing epidemic in U.S. and pandemic in other countries and will bring peace in the U.S. economy. The Democratic government has crossed the magical figure of 270 seats in order to get a majority win. In the victory speech, Joe Biden and Kamala Harris have stated that it is a time to heal for America. After winning with the majority for White House, U.S. Vice President (Now) Kamala Harris, in her speech has stated that she will remain as loyal and honest what Biden was for 44th President Barak Obama. Our country has been through sorrows, worries and pain this year due to Covid-19 but U.S. countrymen have voted for hope, unity and a man who is a healer. She is the first women to augment the chair of U.S. Vice President but not the last.
How Joe Biden’s win will affect the various asset classes
The presidential period of Donald Trump has been one of the highest volatile periods the world economy has ever seen. His criticism over Federal Reserve decision on monetary policy, overnight tweets having complicated statements on trade relations with China, U.K. and OPEC countries had kept the market participants on toes every time. Emerging market currencies and other risky assets have been through vulnerable periods in the Trump’s tenure but the Joe Biden’s historical events have sculptured him more a friendly bi-lateral trader. In the recent presidential debate, Trump has stated that Air in India, China and Russia is ‘Filthy’ which doesn’t deliver a sign of healthy friendship situation with other economies. However, the forthcoming presidential period under the guidance of Joe Biden seems more lucrative for risky assets on an expectation of fall in uncertainty.
How Joe Biden’s win put India in a better position?
History defies more about the forthcoming decisions for a person and U.S. President (Now) Joe Biden has a favor for India always. The U.S. President Joe Bin has planned to increase H-1B visa limit which is expected to benefit thousands of Indian professionals in augmenting the immigration policies. Biden is expected to veto the work permit of the spouses of H-1B visas, which has affected the Indian families in U.S. earlier. Moreover, he will remove the country quota of green cards which may help the migrants in U.S. In his visit to India seven years back, he advocated for trade relations amounting to $500 billion, which as of now stands near $150 billion. He has clearly stated that “Partnership of U.S. and India is defining relationship of 21st century and he is planning to strengthen more.
How Indian market participants should see Joe Biden’s win?
Market veterans were mentioning from a few weeks that Indian equity markets are likely to trade volatile in the upcoming sessions as valuations have turned highly expensive for the investors, Trump’s defeat could bring more instability in the political charter of the U.S. and vaccination for Covid-19 has yet not developed. However, the views of Joe Biden’s towards India seem healthier for the bilateral trade in the upcoming years and his advocacy towards increment in H-1B visas would ease the operations of the Indian IT sector. His win with majority is expected to bring more political stability in the U.S. House of Representatives and Senate. This may cheer the emerging markets and Indian economy is expected to get more from his win. The Indian markets are likely to perform well in the upcoming sessions, a sense of volatility will be less and one should not mistake in understanding the Indian equities as an overbought market.