GLIN - GLIN: A Unique Approach To Investing In India

2024-06-12 20:20:41 ET

Summary

• Indian equities have continued their march higher this year.
• The recent election result isn't ideal but shouldn't derail the structural trend either.
• GARP-oriented GLIN is a worthy consideration in the face of post-election uncertainties.

In light of how last year's state elections panned out and per polling numbers heading into this year's general election, it was a big surprise that India's Prime Minister Narendra Modi, dubbed 'most popular global leader' earlier this year, saw his party lose its simple majority this time around. The silver lining, though, is that his 'Bharatiya Janata Party' (or 'BJP'), together with its National Democratic Alliance (or 'NDA') coalition allies, retained its overall majority. So while PM Modi's ’big bang' factor reforms are probably off the table (think changes to the labor code , land acquisition , etc), less controversial fiscal boosts in the form of infrastructure spending and production-linked incentives remain on track. Another possible outcome is that we see a pullback in fiscal consolidation and more support for the consumer, particularly in rural areas, at the upcoming Union Budget announcement....

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