Volume 02, Issue 04
Published on: April 2026
“IMPACT OF U.S. POLICY ACTIONS UNDER DONALD TRUMP ON THE INDIAN STOCK MARKET: AN EVENT STUDY APPROACH”
Jocelyn A
MBA Finance Student of Faculty of management studies CMS Business School Jain Deemed to be University Bangalore India
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Abstract
India's stock market is very reactive to domestic and international economic developments. During Trump's administration (2017−2025), a number of the U.S. policy measures (for example: Tax Cuts & Jobs Act, United States-China trade conflict, United States withdrawal from the Iran nuclear agreement, and ramifications of tariffs on Indian goods) impacted stock prices worldwide. This work explores the effect of U.S. policy measures on the Indian stock market by looking at key indices (Sensex and Nifty) and individual sectors such as Information Technology, Pharmaceuticals, and Metals. Additionally, data collected qualitatively through an online survey regarding how market participants view the effects of U.S. government policies on their behavior will be included. It was found that those who reacted negatively to U.S. government policies (e.g., tariffs) created significant downward pressure on stock prices. Positive changes (e.g., trade truce announcements) produced only temporary increases in stock values. From the survey results, the authors conclude that the majority of market participants believe that U.S. government policies have significant effects on market prices, and they routinely adjust their investment behavior based on their perceptions of the expected effects of U.S. policies. In conclusion, through using a combination of these various research techniques, an all-encompassing understanding of how U.S. policy changes perform a significant role in determining the price levels of stocks within the emerging marketplace such as India has been accomplished. The research also demonstrates the role of market participants' sentiments towards the market in moderating the responses to U.S. policy shocks.
Keywords: US policy, Indian stock market, event study, investor perception, Trump administration
Keywords: US policy, Indian stock market, event study, investor perception, Trump administration
How to Cite this Paper
A, J. (2026). “Impact of U.S. Policy Actions under Donald Trump on the Indian Stock Market: An Event Study Approach”. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(04). https://doi.org/10.55041/ijcope.v2i4.106
A, Jocelyn. "“Impact of U.S. Policy Actions under Donald Trump on the Indian Stock Market: An Event Study Approach”." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 04, 2026, pp. . doi:https://doi.org/10.55041/ijcope.v2i4.106.
A, Jocelyn. "“Impact of U.S. Policy Actions under Donald Trump on the Indian Stock Market: An Event Study Approach”." International Journal of Creative and Open Research in Engineering and Management 02, no. 04 (2026). https://doi.org/https://doi.org/10.55041/ijcope.v2i4.106.
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