The outcome of the state polls may lead to some strategy-related permutations and combinations and the markets may extrapolate it to the likely outcome in the general elections.
The Morgan Stanley note makes a strong case for supply-side reforms, glossing over the virtues of a demand side pull that even a small redistribution of wealth can trigger
India Business News: India's benchmark Nifty 50 Index has historically seen gains in the six months leading up to general elections, with an average return of 16%. As Prim
Starting with Chhattisgarh and Mizoram, five Indian states hold assembly elections, setting the stage for the 2024 Lok Sabha polls. A weak coalition government is a concern for the national economy. However, excessive promises and giveaways, or the revdi culture, may impact long-term growth and fiscal deficits, potentially affecting economic fundamentals and investment.
Chetan Ahya, chief economist at Morgan Stanley, Asia, says that the key metric the US Fed is watching is the unemployment rate and monthly jobs addition. Restricted growth in the US and Europe too will restrict global growth, he says.