Elections in 2024 will disturb the ‘peace’ of Indian equities: Morgan Stanley
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New Delhi (Uttam Hindu News): According to Morgan Stanley, India’s $3.7 trillion stock market is about to be disturbed as one of the world’s most populous countries goes to the polls in about six months.
According to Bloomberg, the Wall Street bank expects the vote to send shares higher in keeping with recent history, but any outcome outside investors’ expectations could send India’s equity benchmark falling as much as 30 percent.
A “credible seat-sharing arrangement” within the Congress-led opposition coalition, known as India, “would polarize the general elections and reduce predictability of the outcome in May,” strategist Ridham Desai wrote in a note on Monday. Will give.”
Indian shares have gained nearly 7 percent this year and outperformed their peers in Asia and emerging markets, as earnings and growth in the economy have attracted local and global investors.
The India VIX, a measure of expected stock-price fluctuations, has fallen 25 percent so far this year to near its historic low.
“A potential change in government could lead to a shift in the direction of policy reform and implementation, which could dampen investment sentiment,” Bloomberg report quoted Morgan Stanley as saying.
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