If the two countries can’t agree and impose retaliatory tariffs, it will lead to a risk-off stance among global investors. So far in this calendar year, foreign institutional investors (FIIs) have bought Indian stocks worth nearly $10 billion. In addition, Indian investors also have a domestic worry to deal with for now—the election results. Jinesh Gopani, head of equities at Axis Mutual Fund, said: “Foreign flows into Indian equities could improve if there is a strong government at the centre. But despite risks rising all around, the MSCI India Index continues to trade at a higher valuation multiple than its emerging market and developed market peers.

Source: Mint May 07, 2019 18:11 UTC