Capex cycle revival, Modi re-election key for rally: CLSA's Chris Wood

The ‘Indian story’ will be badly damaged if the formidable Narendra Modi government was not re-elected for another term, writes Christopher Wood, managing director, equity strategist at CLSA in his weekly note, GREED & fear.

A key trigger for the markets, according to him, is kick-starting the investment cycle, which Wood feels will be more likely if the non-performing loan (NPL) overhang in the banking system is resolved. The key question here, however, will be whether the deadlines will be enforced since the whole point of the deadline is to force decision-making and faster resolution.

Though India still remains the