India: Market Update January 2017

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.

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.