Caution on India stocks in election year

As more than €3bn (£2.6bn) flowed into European funds and exchange-traded funds (ETFs) specialising in Indian equities in the first quarter of 2024, according to Morningstar estimates, investors have begun to question whether the India stock market is looking overvalued. There is little doubt a re-election of Modi is on the cards in the upcoming general elections and therefore, there should be not be any major price swings. However, his confirmation would immediately put him in front of the need to deliver on his promises - including the 'Made in India' programme, which may cause some investors...