 "'Implementation would be the nub'")
With a focus on policy paralysis, system reforms, job creation, tackling corruption and Team India as a concept, the Bharatiya Janata Party (BJP) issued its manifesto for the Lok Sabha polls on Monday.
The map laid out assumes significance as most opinion polls expect a Modi–led BJP government. Among key emerging markets (EMs) in 2014, India has been the biggest recipient of foreign institutional investor flows, at a little over $4 billion, followed by Taiwan ($3.6 bn) and Indonesia ($2.4 bn).
The benchmark stock exchange indices, the S&P BSE Sensex and the CNX Nifty, have moved up 5.1 per cent and 5.7 per cent in this period, with high-beta cyclical sectors like infrastructure, banks, automobiles and realty leading the rally.“There are a lot of promises and the markets should be happy on seeing the proposals. It covers most of the issues. The GST and reviving of infrastructure spending are key positives and the markets should give a thumbs-up to these,” says Andrew Holland, chief executive officer, Ambit Investment Advisors. “However, one will have to wait and see how their policy on FDI in multi-brand retail plays out if a BJP-led government assumes charge at the Centre, since some states could vote in favour of opening it up.”
Adding: “Overall, the BJP’s policies seem more centre-right, as expected, versus Congress’ more centre-left policies. While the vision of both BJP and INC (Indian National Congress) parties remains on higher growth and lower inflation, their strategies differ and it will finally boil down to implementation. Opinion polls continue to point to rising momentum in favour of the BJP in the general elections. We believe the policies laid out in the BJP’s manifesto appear both sound and prudent, and, if implemented, bode well for the economy.”
The map laid out assumes significance as most opinion polls expect a Modi–led BJP government. Among key emerging markets (EMs) in 2014, India has been the biggest recipient of foreign institutional investor flows, at a little over $4 billion, followed by Taiwan ($3.6 bn) and Indonesia ($2.4 bn).
The benchmark stock exchange indices, the S&P BSE Sensex and the CNX Nifty, have moved up 5.1 per cent and 5.7 per cent in this period, with high-beta cyclical sectors like infrastructure, banks, automobiles and realty leading the rally.“There are a lot of promises and the markets should be happy on seeing the proposals. It covers most of the issues. The GST and reviving of infrastructure spending are key positives and the markets should give a thumbs-up to these,” says Andrew Holland, chief executive officer, Ambit Investment Advisors. “However, one will have to wait and see how their policy on FDI in multi-brand retail plays out if a BJP-led government assumes charge at the Centre, since some states could vote in favour of opening it up.”
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Say Sonal Varma and Aman Mohunta of Nomura in a report: “In our view, when compared to the Congress manifesto which focuses on entitlements, the BJP is relying on effective delivery/implementation and better rural infrastructure to result in rural prosperity. Similarly, rather than promoting higher support prices as promised by the Congress, the BJP plans to develop the agriculture sector by increasing public investment and boosting productivity.”
Adding: “Overall, the BJP’s policies seem more centre-right, as expected, versus Congress’ more centre-left policies. While the vision of both BJP and INC (Indian National Congress) parties remains on higher growth and lower inflation, their strategies differ and it will finally boil down to implementation. Opinion polls continue to point to rising momentum in favour of the BJP in the general elections. We believe the policies laid out in the BJP’s manifesto appear both sound and prudent, and, if implemented, bode well for the economy.”