Investors in India must keep an eye on politics in 2018, say analysts

As Indian equities are set to close out 2017 near all-time highs — and volatility hovers near historic lows — analysts say investors must keep an eye on politics for signs of a turn in the current bullish sentiment.
 
Polls will grab market attention next year as eight states, covering a fourth of the nation’s population will hold elections over the next 12 months, brokerages including Credit Suisse noted. A setback for the Bharatiya Janata Party would surprise investors betting on Prime Minister Narendra Modi winning a second term in 2019, according to Nomura Financial Advisory & Securities.