From Morningstar: 2024-05-09 04:56:00

Investors are showing confidence in Indian stocks ahead of the elections, with over €3 billion flowing into Indian equity funds in the first quarter of 2024. The IMF predicts India’s GDP growth to outpace China’s, fueling expectations for a Modi re-election and continued economic growth.

Experts believe a third term for Modi is likely, fostering stability and economic development in India. The country’s economic prospects seem promising, with monetary policies keeping inflation in check and social reforms supporting growth. A Modi victory could boost foreign investment and entrepreneurship in India’s financial markets.

While the Indian stock market has seen significant gains, concerns about overvaluation persist. Investors are advised to exercise caution with individual stock valuations but remain optimistic about long-term growth potential. Risks for investors include inflationary pressures from rising oil prices and the need for India to boost exports for sustained growth.

Apple and Tesla are eyeing India for expansion, taking advantage of the country’s appeal as a potential alternative to Chinese manufacturing. Companies are exploring partnerships for production within India, signaling a shift in global supply chains. However, caution is advised due to high stock valuations in India, prompting some managers to be selective in their investments.



Read more at Morningstar: India Stocks Are Popular in Election Year. Are They…