Newton's Whitbread: Why we are avoiding soaring Indian stocks

The result of the Indian election, although positive for the economy, may not be as much of a game changer for investors as some suggest, according to Sophia Whitbread, manager of the Newton Emerging Income fund.

The Indian market has hit an all-time high following the results of the general election last month, which saw a resounding win for the main opposition party, Bharatiya Janata Party. The index is currently trading at 25,473, just off its record high of 25,735 seen earlier this month. However, Whitbread (pictured) said the reaction of the market to the news may be overblown, as the country is still struggling with a number of headwinds. "We recognise the strong performance of the market recently, but we have concerns about quite how much has been priced in and the extent to which th...