LGIM over Indiase verkiezingsuitslag

LGIM over Indiase verkiezingsuitslag

23 mei 2019

India
Vlag India.jpg

Uday Patnaik, Head of Emerging Market Debt at Legal & General Investment Management (LGIM):

“Narendra Modi’s BJP-led NDA government looks set to make history in a dominant victory as the only non-Congress government set to return to power.”

 “Impressively, the latest trends show the BJP alliance potentially reaching 350 seats in the Lok Sabha out of a total 542 seats.  The BJP alliance won 336 seats in the 2014 national elections.  With Modi’s BJP itself expecting to cross the half-way mark of 272 seats, optimism on India’s growth and reform story are set to continue.”

“With economic policies expected to progress (e.g., fiscal consolidation, infrastructure spending), this will provide comfort to both debt and equity investors.  In terms of immediate market focus, the changes in the cabinet, specifically who receives the Finance Ministry appointment, will be important.  Modi will be looking for support from the RBI to help arrest the recent slowdown in growth, and the market will also focus on further liquidity injections into the banking sector.”

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