Indian Equities Lag as Elections Loom

Upcoming elections are being blamed for the Indian stock market lagging 11% behind the wider MSCI Emerging markets index so far this year

Cherry Reynard 2 April, 2019 | 9:59AM

India's ruling Bharatiya Janata Party (BJP) president Amit Shah, centre

Having been an oasis of calm amid the emerging market rout in 2018, India has had a dismal run in recent months. While other emerging markets have powered ahead, India has been laid low by fears that its reform agenda could be derailed by upcoming elections. Are those fears justified? And could there also be risks for other Asian nations facing elections this year?

Emerging markets have been on an exciting ride since September of last year. Not only are emerging market indices up by over 10%, but they have performed well at a time when developed markets were struggling. This is rare; emerging markets are usually seen as a warrant on global growth.

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Security NamePriceChange (%)Morningstar
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Aberdeen New Thai Ord341.00 GBX4.92

About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.

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