Buy the rumour, sell the fact? Managers urge caution on India

Buy the rumour, sell the fact? Managers urge caution on India

In the aftermath of its recent elections, Laura Dew looks at how managers view India now from an investment perspective.

Managers are delaying investing in India as they wait for election-related euphoria to subside and newly elected Prime Minister Narendra Modi to make his first moves.  Modi’s Bharatiya Janata Party won this year’s elections via the biggest victory for any single party in 30 years. The BJP won 282 out of 543 seats in Parliament, surpassing the 272 seats required for a majority. Modi will head a grouping which accounts for 336 seats in total, but the strength of the BJP points to the end of years of fragile coalitions. The BSE Sensex, India’s main stock market, briefly passed 25,0...