US Election Result 2024 Updates: Donald Trump Becomes The Oldest President

Commodities declined on Wednesday amid expectations that a stronger dollar and the possibility of trade disputes under a Donald Trump presidency could reduce the demand for raw materials in global markets.

Brent crude futures dropped by up to 2.5% in London, soybeans fell to their lowest in a month in Chicago, and copper led the decline in industrial metals with a 3.6% fall. Gold fell below $2,700 per ounce, according to Bloomberg report.

Donald Trump has been elected the 47th president of the United States, Associated Press, Bloomberg News and Reuters reported.

The run up in the US markets ahead of the Donald Trump's victory as the 47th President of the United States of America has rubbed off on the shares of Tesla Inc. The stock gained over 36% in the last six months in aftermarket trade.

There are two aspects of the tax element of an investment in stocks abroad.

The first impact hits the investor at the time of making the investment because, under the rules, there will be a tax collected at the source for such investments. The rate now is 20% when the remittance exceeds Rs 7 lakh in a year, so the investor needs to factor this into their cash flow consideration as they will have a lower amount left in their hands to invest once the TCS impact is accounted for.

The other aspect is the taxation of the gains that may arise on the shares that are bought on the overseas stock exchange. The gains from the sale of shares would be classified as capital gains. The shares are, in this case, listed on US stock exchanges, which are not recognised stock exchanges in India, so the holding period for the classification into short-term and long-term capital gains is 24 months.

Short-term capital gains for shares sold before 24 months will be added to the individual's income. Long-term capital gains will be taxed at a 20% rate with the benefit of indexation.

Stocks in the US is poised for strong gains on Wednesday as traders remained optimistic with the prospects of the former president returning to the White House as he is in a comfortable majority against Kamala Harris.

The future contracts in the US surged on early hours of Wednesday (New York time) as Trump was on track to win with 267 votes along with key swing states.

S&P 500 futures rose by 2.4% to 5,951.50 while the Dow Jones futures and Nasdaq futures rose by 2.70% and 1.78% respectively as of 2:35 a.m.

Meanwhile, stocks in Europe echoed gains made in Asia as Euro Stoxx 50 and FTSE 100 rose 1.26% and 1.36%, respectively.

Even before Donald Trump staked claim to a second stint in the Oval Office, Elon Musk's Tesla Inc. shares jumped as much as 13% in aftermarket trade on Tuesday

With focus back on the EV maker, here how Indian investors can buy Tesla shares:

Direct Investment

The first option is to open an overseas trading account with a domestic broker that offers access to international stock markets. Brokers like HDFC Securities, ICICI Securities and Kotak Securities are domestic brokers that offer such services.

The second option via the direct investment route is to directly open an account with a foreign broker that has a presence in India like Charles Schwab, Interactive Brokers, Ameritrade, among others.

Indirect Investment

Indian residents that are not keen on investing directly in the U.S. stock market can have indirect exposure by investing in mutual fund schemes that have exposure to international markets and will invest in foreign stocks.

Another way is to invest in exchange-traded funds. An investor can either invest in U.S. ETFs via a domestic or international broker or purchase an Indian ETF of international indices.

How Much Can You Invest?

Under the Liberalised Remittance Scheme, the Reserve Bank of India permits an Indian resident to invest up to $2,50,000, which is around Rs 2.07 crore per year, without any special permissions.