Forbes/ by Kenneth Rapoza
Morgan Stanley did a study that showed how equity markets move post-election in emerging markets. On average, they rise about 2% in the first 100 days. India is becoming an exception to the rule. The Wisdom Tree India Earnings (EPI) exchange traded fund rose
2.65% in one day. And since Narendra Modi’s BJP Party was voted into Parliament by a wide margin, EPI is up 11.56%. That’s better than the benchmark MSCI Emerging Markets Index, better than the S&P 500, and better than Indonesia, which is in the red, and a
month away from their presidential election.
India looks unstoppable.
The Modi wave is turning out to be the perfect wave in what too many investors are believing will be an endless summer.
The benchmark Sensex made history on Thursday, closing above the 25,000 mark thanks to foreign investors buying up resource and infrastructure stocks. The 50-share NSE Nifty climbed 71.85 points, or 0.97% higher to close at a new peak of 7,474.10. Sure, the
latest European monetary policy announced by Mario Draghi of the European Central Bank helped out. But it helped out India equities more than it did any other BRIC market. Even Poland, seen benefiting from any type of European investment, rose just 1.7% on
the day………….[Read More]