Trump 2.0: Here’s how Trump-sensitive sectors in India moved since his win in November

US President Donald Trump

Ever since November 5, 2024, when US President Donald Trump won the US Presidential elections, there were expectations that certain Indian sectors would be affected, either positively or negatively, by his trade policies. There was a lot of chatter around the possible tariffs and visa policies that could affect many countries, including India, and sectors as well.

With Trump all set to occupy the Oval Office, here is a look at how these sectors have performed since his win.

Pharma

The Nifty Pharma index has declined by 2.13 percent since November. Market experts had anticipated that the Indian pharmaceutical sector, especially generic drug manufacturers, could face challenges if Trump returned to power. This was based on the expectation that he might focus on cutting the US healthcare budget and introducing global tariffs, which could hurt Indian exports.

Information Technology

The Nifty IT index has gained 3.81 percent since November. The market expected a negative impact on the sector, with increased US corporate spending due to tax cuts, but also stricter offshore outsourcing policies. During his previous term, Trump prioritised American jobs and encouraged IT companies to hire locally for on-site roles, which could increase costs and impact the profit margins of Indian IT firms.

Metals

The Nifty Metal index has dropped by 9.28 percent since November, which contradicts market expectations. Trump's return was expected to be beneficial for the Indian metal sector due to his anti-China stance, which could have created more opportunities for Indian metal producers. China, being a major exporter, has been accused of dumping metals at low prices. Analysts had predicted that Trump might impose a 60 percent tariff on Chinese goods, potentially boosting demand for Indian metals. However, the market has reacted differently so far.

Energy

Since November, the Nifty Energy index has declined by 10 percent. Some parts of the Indian energy sector remain under pressure, as Trump has expressed an anti-ESG (Environmental, Social, and Governance) stance. In his victory speech, he mentioned plans to halt renewable energy projects on "day one" of his presidency. Many Indian companies export solar modules to the US, and new protectionist policies could create additional challenges, especially since India imports a significant number of solar cells from China.

Rupee

It was widely expected that Trump's pro-growth policies, such as corporate tax reductions and tariffs, would strengthen the US economy, leading to a stronger dollar as investors move their funds to US assets. As a result, the Indian Rupee has depreciated by 2.93 percent against the US dollar since November.

Crude Oil

Crude oil prices have risen by 6.6 percent since November. Trump's policies favour increased oil production, which may have contributed to the rise in prices.

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