The unexpected and key winning performance of Republican Donald Trump over Democrat Hillary Clinton in Florida took US presidential election a close tie and our PM Narendra Modi’s withdrawal of Rs.500, 1000 notes resulted in the fall of Indian stock market. As per a report, Senses sank more than 1000 points and Nifty sank by more than 500 points.
In fact, Clinton victory would have been more favorable for Indian stocks traded in global markets which would have smoothly continued the existing US policy. This could be only a short term disruption because a major section of market analysts are welcoming Modi’s move and called it as a very good measure to control black money.
‘There will be a short term pain and long term gain. Inflation will moderate and going to control the fiscal deficit. Black money will come down drastically,’ a few inferences found from market analysts. They also opined that, Indian long-term economy fundamentals would not be impacted by US election results or by scrapping of big denomination notes.