INDY - FLIN: Plenty Of Upside Left In India's Post-Election Phase
2024-06-15 09:32:38 ET
Summary
- India's election uncertainties have now cleared.
- Policy continuity bodes well for the next chapter of India's growth story.
- Ultra-low-cost FLIN should continue to outperform.
Indian markets may have suffered an initial setback in the wake of this year's general election , but the subsequent rebound confirms, as I mentioned in FLIN: Ride This Ultra Low-Cost ETF Into India's General Elections , that equities aren't as aggressively priced as many think. To recap, Indian Prime Minister Narendra Modi's ruling 'Bharatiya Janata Party' (or the 'BJP') surprisingly fell short of the 272 seats required to obtain a simple majority on its own. This means a slightly higher policy-making hurdle as, unlike in PM Modi's previous terms (see India Today’s graphic below for comparison), the BJP now needs consensus within its NDA coalition. It also puts off more contentious factor reforms (land, labor, capital, etc) that would have accelerated India's structural growth for the next five years....
FLIN: Plenty Of Upside Left In India's Post-Election Phase