Election results in state will dictate Modi's reform agenda

Mumbai

INDIAN stocks are leading gains in Asia this year, the rupee has recouped almost all its losses since Donald Trump's US election win and foreigners have pumped US$2.4 billion into the country's bonds and equities.

As investors wait for the results of one of Narendra Modi's biggest electoral tests since he came to power in 2014, there's a lot more at stake than just the political fortunes of a prime minister who disrupted the lives of Indians with the sudden withdrawal of 86 per cent of banknotes in circulation in November.