The day a real estate moghul made it to the most powerful post in the world, realty markets tanked in India largely in line with the collapse of stockmarkets and currencies worldwide.
Back home, the realty slump was a direct fallout of the partial demonetization announced by prime minister Narendra Modi to rein in black money on Tuesday. The market in India will be majorly affected by this move since a large component is transacted in undeclared cash, which is now worthless paper.
Indian equity markets were roiled by the twin news of the possibility of a Trump Presidency and the Indian demonetization. Both the Bombay Stock Exchange and the National Stock Exchange fell by over 3% - an 850 point drop on the BSE and a 283 point fall for the Nifty. The rout was led by construction and real estate company stocks like DLF, Unitech, JP Associates, India Cements, GMR and GVK Power and Infra.Also Read: US Polls 2016: Trump, Clinton Run Close in Ohio, Florida and Elsewhere
The possibility of the real estate mogul Trump within sniffing distance of the most powerful position in the world will roil equity, bond and currency markets worldwide.
Donald Trump is the Chairman and President of the Trump Organization, which has interests in real estate development, property management, investing and brokerage. Trump’s real estate holdings are the core of his business empire. Trump’s business model operates on a licensing model, where the ‘Trump’ name is licensed out to outside properties (hotels, casinos, condominiums), which pay a royalty.
In India, Donald Trump is connected with 2 projects. The Trump Organization has tied up with the Lodhas and the Panchshil Group for super luxury real estate projects in Mumbai and Pune, which will be marketed as ‘Trump Towers’.
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