Traders shy away from Modi-linked stocks in shift to defensives
Investors in India are shunning stocks that were expected to benefit from Prime Minister Narendra Modi’s re-election, and instead piling into defensive sectors.
An index of the so-called Modi stocks, a term coined by CLSA, has climbed only 2% as the prime minister completed his first 100 days in office after winning a third term in early June. In contrast, consumer and software stocks have rallied 20% and 34%, respectively.
A few recent policy reversals highlight the element of uncertainty that investors must grapple with after a decade of certainty, as Modi increasingly leans on coalition partners. That’s led to concerns stocks tied to government policies may continue to trail the broader market.
There’s “a pronounced shift in focus from infrastructure to agriculture and consumer sectors,” said Sonam Srivastava, founder and fund manager at Wright Research and Capital Pvt. The rotation has been aided by the recent volatility in global markets and the election outcome, she said.
Stock Trading
Market 101: An Insight into Trendlines and Momentum
By — Rohit Srivastava, Founder
Stock Trading
Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading
By — Rohit Srivastava, Founder
Stock Trading
Market 103: Mastering Trends with RMI and Techno-Funda Insights
By — Rohit Srivastava, Founder
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time Options Trader
Stock Trading
Introduction to Technical Analysis & Candlestick Theory
By — Dinesh Nagpal,
