India: Market Update Nov 2016

Prime Minister Modi’s immediate political stance relies on the clinical execution of the demonetisation programme. His 2014 campaign was built on a platform of delivering economic growth and stamping down on corruption. We now know that the five state elections are due to commence just a week after the national budget which has now been brought forward to 1 February. These elections across key states such as Uttar Pradesh will take place simultaneously with the results announced in mid-March.

2017 will be dominated by implementation, economic growth, local elections and of course, Donald Trump. His impact on India is yet to become clear but we believe India will remain a core focus of the US. The Indian stock market has taken some pain following Trump’s election victory as well as demonetisation, resulting in more attractive valuations.