Reported 4 months ago
Prime Minister Narendra Modi's smaller-than-expected poll victory leads to concerns among bond investors about increased populism affecting India's debt dynamics. The election results startled traders, causing a selloff in Indian assets with stocks experiencing the worst day in four years, bond yields rising sharply, and the rupee hovering near a record low. Modi's Bharatiya Janata Party will need pre-election allies to form a government, raising worries of populistic measures, fiscal stress, and increased spending. Markets are on alert for potential fiscal slippage risks amidst crucial state elections and uncertainty about the government's fiscal policies.
Source: YAHOO