Investors who like continuity in policy need not worry about a new government taking time to assess the macroeconomic situation, before tackling the problems the country faces. “The solution to some of the country’s problems would need some tough reforms such as changes in labour laws, land acquisition laws, and privatisation. Unless some of these tough measures are taken in the next few months, investors will need to do a reality check," said the head of research at an institutional brokerage on condition of anonymity. An important point to note about Monday’s rally is that institutional investors weren’t all that gung-ho. “The markets have risen 6% in the past three trading sessions, besides which valuations are higher than five years ago.

Source: Mint May 20, 2019 17:37 UTC