Political stability alone isn’t likely to drive continued outperformance by equities or currency, with investors also weighing headwinds facing the economy.
The Indian rupee tumbled the most in three months after RBI lowered the repurchase rate but refrained from shifting to a more easy stance on monetary policy.
The RBI has ensured that the rupee is stable which has given international investors the confidence to buy Indian assets including masala bonds, said a portfolio manager.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
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