India’s equity markets might face a main downturn if the ruling Bharatiya Janata Occasion (BJP) does no longer accurate victory in the upcoming nationwide elections in 2024, warns Chris Wood, the international head of equity approach at Jefferies LLC, Bloomberg reported on Monday.
Comparing the aptitude influence to the BJP’s unexpected loss in 2004, Wood stated that he anticipates a correction of 25 per cent or possibly more in the stock market if the BJP doesn’t retain energy.
While acknowledging that clear authorities-initiated reforms, resembling the output-linked incentive programs to attract international supply lines, are unlikely to be reversed, Wood emphasised that there might be a noteworthy correction. In response to Bloomberg, he expressed self assurance in the market’s resilience “The momentum is such that it’s a long way going to leap assist.”
In 2004, India’s stock markets experienced a pointy 20 per cent decline over two days following the BJP-led authorities’s surprising defeat in nationwide elections. Nonetheless, the markets partially recovered after a Congress social gathering-led coalition authorities assured continuity of insurance policies aimed at opening up the South Asian economy, calming each and every the nation and the financial markets.
Wood also highlighted India’s promising enhance possibilities, characterising it as the “supreme enhance narrative on this planet going forward,” namely in the Asian diagram. He suggested that ongoing challenges in China derive handiest strengthened this obvious outlook for India.
(Inputs from Bloomberg)
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