Government expenditure is likely to accelerate over the next two years and the Indian equity markets are expected to outperform its emerging market peers driven by pro-growth government policies, says a report. Three stand out similarities are seen over the final two years of every political administration. First, there is a rise in government expenditure led by capital expenditure. Second, pro-growth government focus has led to Indian equity markets outperforming emerging markets and third, capex-linked sectors and consumer cyclicals tend to outperform the most. The report noted that pro-growth policies and expeditious execution tend to help India's relative performance as against its peer group.

Source: dna April 27, 2017 08:21 UTC