Rich valuations leave little room for disappointment in Indian equities

ON JUN 9, Narendra Modi was sworn in as India’s prime minister for a third term. This followed surprising election results; Modi’s ruling party secured a narrower-than-expected victory, despite exit polls predicting a landslide win.

The outcome is seen as a setback for the leader who has driven significant reforms and delivered high economic growth in the country.

India’s equity market responded to the results with volatility. The Sensex Index, comprising 30 large and most actively traded corporations on the Bombay Stock Exchange, tumbled 6 per cent on Jun 4, the day of the election results. It marked the worst trading session in four years.