But foreign money has been pouring into Indian equities, giving Prime Minister Narendra Modi a vote of confidence. KoyfinThe recent rally has been driven by foreign money buying into Indian stocks, according to the Wall Street Journal. Elections are closely followed by foreign investors, as they look for clues to policies that could fix the many problems that prevent emerging markets from achieving sustainable growth. Last fall, for instance, foreign money poured into the Brazilian market in anticipation that Jair Messias Bolsonaro would win the elections and pursue policies that could re-ignite the country’s economic growth. Still, a vote of confidence by foreign money and a rally in Indian equities won’t help Modi keep his job.

Source: Forbes April 06, 2019 14:37 UTC