Stocks to buy today: Experts recommend these 5 shares as Donald Trump starts his second term

Stocks to buy today: Donald Trump has returned to the White House as the 47th President of the United States. On Monday, January 20, he took the oath of office and, on his first day, made a series of announcements, including tariffs on Canada and Mexico, the US withdrawal from the WHO, and internal probes into the Biden administration. Trump's second term is expected to bring significant shifts in US trade policies and reshape the geopolitical dynamics between the world's largest economy and its global peers. From a stock market perspective, his policies on trade tariffs targeting countries such as China and India, his stance on immigration, and his efforts in global peacekeeping will be highly significant.

Experts believe that India is likely to be in a stronger position than many other nations during Trump’s second term, given the positive relationship between the two countries during his first tenure. However, his unpredictable approach to policymaking and inconsistent dealings with friends and foes make it challenging to predict future developments.

Arindam Mandal, the head of global equities at Marcellus, anticipates the US market becoming gradually more broad-based over the next two to three years.

"This expectation stems from the belief that under Trump, there could be a general acceleration in small business recovery, which has struggled since 2021. Assuming the U.S. economy remains stable, this normalization appears likely," said Mandal.

"While we recognise the usual risks tied to geopolitics and a highly financialised, leveraged global economy, it’s worth noting that these risks are widely acknowledged. Our base case assumes that major powers will act within established norms, which, if true, could support reasonable returns over a sufficiently long holding period. In the near term, however, market movements remain difficult to predict, regardless of leadership changes," Mandal said.

Shares to buy for the short term

Experts anticipate some sectors, such as technology and defence to flourish in Trump 2.0.

"Asia's economies may face volatility due to Trump's trade wars and tariffs, but some sectors — like tech and defence could thrive. So, Trump 2.0 is expected to fuel buying in defence and tech-enabled defence stocks soon," said Ross Maxwell, Global Strategy Operations Lead at VT Markets.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, suggested rather than looking at traditional defence stocks, one should consider buying tech-enabled defence stocks like drone and aerospace stocks, keeping the Trump 2.0 factor in mind.

Mahesh M Ojha, AVP of research at Hensex Securities, said short-term investors should look at buying these five defence stocks during Tuesday's deals: Apollo Micro Systems, Paras Defence, Mazagon Dock Shipbuilders, Hindustan Aeronautics Limited, and Zen Tech.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.