Boost for stock markets! Kamala Harris being named Biden's VP pick is a positive, Ajay Bagga tells Anil Singhvi

Indian investors should not be too worried about the Tuesday fall in the US Markets, expert Ajay Bagga told Zee Business Managing Editor Anil Singhvi today. Bagga said that the fall was on expected lines as the markets have been up over the last 7-8 trading sessions. There was no fundamental change in the US markets on Tuesday that triggered the fall, he added.

Bagga further said that the Democratic presidential candidate Joe Biden has named his Vice Presidential candidate and she is none other than Senator Kamala Harris, an Indian-American,  which is another positive for the markets. He expects the US markets to rebound today, itself.

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Bagga advised domestic investors against any short-selling, saying that the market momentum was still on the higher side. 

He said that the markets have consolidated slightly and the Futures are already up today. Dow Futures were up by 0.2 per cent while Nasdaq Futures were trading up 0.3 per cent.  

However, there is a certain disappointment in the US over the stimulus package not coming through yet. President Donald Trump granted a stimulus by way of an executive order over the weekend, he said. 

The stimulus has been stuck amid a tug of war between the Republicans and the Democrats. While the former is keen on extending a stimulus of USD 1 trillion against the demand of USD 3 trillion by the latter, Bagga said.  

Republicans have been demanding that the states be given the money as they have not been getting taxes.

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He said that the back channel talks are on and there could be an agreement reached between the two parties on this issue this week. If this happens, it will be good for the markets, Bagga said.