Trump or Kamala Harris: A mixed bag effect for Indian companies: Antique report

New Delhi [India], October 30 : The results of the upcoming U.S. presidential election may have significant impacts on various sectors in India, according to a report by Antique Stock Broking.
The report suggested that a win for the democratic candidate Kamala Harris could negatively impact the energy sector, while a victory for Republican Donald Trump may benefit infrastructure and capital expenditure companies.
The report noted that if republican candidate Donald Trump wins the election, it will have an impact on several sectors in India. The oil and gas industry may benefit from Trump's support for traditional energy sources. His stance could lead to lower oil and gas prices, which would positively impact oil marketing companies (OMCs) and city gas distributors (CGDs).
The report explains Trump's impact on the energy sector, stating: "Support more exploration and drilling for oil and gas to cut energy costs. Lower global crude and gas prices. Lower oil prices would be negative for upstream and positive for OMCs. Similarly, lower gas prices would be negative for upstream and positive for CGDs."
In contrast, Harris's approach to the oil and gas sector may be less favourable for producers, as her administration could impose penalties related to carbon emissions, increasing costs. This contrasts with Trump's more lenient policies on traditional energy sources.
Additionally, Trump's focus on making the U.S. a global manufacturing powerhouse may create more opportunities for multinational industrial companies.
The information technology (IT) sector could also see benefits under a Trump administration. The report suggests that if Trump revokes China's Most Favoured Nation (MFN) status, it could lead to increased hiring for Global Capability Centres (GCCs) in India, which would positively impact mid-cap IT companies.
The report said "Revoke China's MFN status. This will lead to more hiring of GCCs in India, which is positive for mid-caps".
However, Trump's aggressive immigration stance could present challenges for Indian IT firms, making it harder to obtain H-1B visas for employees, potentially increasing subcontractor expenses and necessitating investments in near-shore delivery centres.
For the pharmaceutical industry, both candidates support lowering prescription drug costs, but Harris may push for faster approvals of generic drugs, benefiting U.S. generic pharmaceutical companies.
The report stated, "Lower prescription drug costs. This move will impact innovators the most as most high-cost drugs are patented and have little or no generic alternatives. This would also hint at faster approvals for first-time generics. This move would be positive for US generic players."
For the metals sector, the report predicts minimal impact regardless of the election outcome, stating, "No material implications. China metal exports to other countries, including India, may increase with higher US tariffs."
Overall, the report highlights that the election results could reshape the economic landscape across various sectors, with each candidate's policies likely to impact industries differently.