Modi: one year on

By Adrian Lim, Senior Investment Manager, Aberdeen

This time last year, Narendra Modi was being sworn into office amid a groundswell of popular support. Expectations were flying high for India’s new prime minister to fulfil election promises to do whatever necessary to get the economy back on its feet. Share prices surged.

Twelve months later and some of the gloss has rubbed off the Modistory. The S&P BSE Sensex Index, which tracks 30 of India’s largest companies, has retreated around four per cent over the past month, after gaining more than 16 per cent since the 26 May ceremony last year. There are signs some foreign investors, hitherto among the premier’s biggest fans, are pulling money out of this market.



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