Last year's Diwali has not been special for investors and traders of Indian stock market. The reason for this is the period of decline in the stock market since October. In the month of February, the market saw the biggest decline of 28 years. Meanwhile, US President Donald Trump and Ukraine President Volodimir Jailonski are meeting on weekends. Will the stock market get relief from this factor.
When Donald Trump became the President of America last time, his main focus was on improving the American economy. For this, he had done a trade war from China, but kept a distance from the military war. Similarly, this time Donald Trump's focus is on making the American economy stable. For this, he has also done works like promoting manufacturing, spending government extravagant, tariffs for trade balance and gold card visa scheme. The reason for the meeting with Volodimir Gelnsky is also to deal for the rare meaning material.
The Indian stock market is very effective from the US policy as well as the global market. The reason for this is that the big stake in the Indian market is of FPO. With the commencement of the presidential election in the US, the FPO started withdrawing from the Indian market, because there was doubt about who would become President among Donald Trump and Kamla Harris at that time. Therefore, along with the global market, there was upheaval in the Indian market.
In October, FPI withdraws around Rs 94,000 crore from India, while from October to February there is withdrawal of Rs 3.10 lakh crore. Therefore, stability can show stability in the Indian stock market due to the stability at the US and the global level.
If Donald Trump and Volodimir Jailonski agree on a deal on this weekend, then many benefits can be seen. This is likely to soften Russia and Ukraine war, which has been going on continuously for almost 3 years. At the same time, Donald Trump also has good relations with Russia's President Vladimir Putin, which can help end the war. In such a situation, his impact will be seen on the market.
Donald Trump has repeatedly said that he can finish Ukraine War in 24 hours. He has always been in support of the Quick Peace Deal. In this way he can help stable the global market. With this, the Indian stock markets can return to the beauty.
However, it also has a risk; If there is no deal between the two leaders, then its effect will be seen on the stocks of the defense companies as well as the shares of energy, commodities.
