ll the political parties have once again got stuck in the ground about the general elections to be held in 2019. Where the Congress is working hard to come back to power, the BJP does not want to lose power. Among them, a big statement came from Modi, the world's largest brokerage house CLSA, in the US.
According to Wood, if Modi does not become PM again, India can be a big loss. These may be losses: if Modi does not come back again, then India's growth will be a big push. So far foreign investors have not invested in the Indian market. This can weaken the rupee. Crude oil prices may increase due to weak rupee. This will increase the cost of petrol and diesel. Eating and drinking things can also be expensive.
If Modi remains the Prime Minister, then it will also have an impact on the Indian stock market as they will continue to be the most profitable. At present, corporate profit is significantly lower than the nominal GDP, due to which companies are not making any investment till date.
In India, the cycle of investment has begun again, it can move further. This will help in improving the NPA's of the banking system. If investment in mutual funds drops sharply, then it can increase the risk for the market. Although the deficit has come down so far, there is no decline in investment.
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