Market weakness based on 'noise' is expected as Indian elections continue

Performance hinges on Modi re-election, experts argue

Jayna Rana
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India prime minister Narendra Modi. Photo: World Economic Forum/Manuel Lopez/Flickr CC BY-NC-SA 2.0
Image:

India prime minister Narendra Modi. Photo: World Economic Forum/Manuel Lopez/Flickr CC BY-NC-SA 2.0

Market volatility based on Indian election "noise" should present attractive investment opportunities over the coming months, according to managers of India-focused investment trusts.

However, they warned investors to tread carefully and seek well-capitalised areas of the market, given conditions could be challenging. This comes just over a week after voting commenced to determine India's 17th Lok Sabha (House of the People), which will remain open until 19 May, before the counting takes place on 23 May. While polls are favouring the re-election of incumbent Prime Minister Narendra Modi of the Bharatiya Janata Party (BJP), who was behind pivotal reform measures such as the Goods and Services Tax, the introduction of a coalition government remains a possibility. ...

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