After three months of intense media coverage, high-decibel campaigning, thousands of AI-generated deepfakes and endless “gaming” of possible election outcomes and potential stock market implications, we can all breathe a sigh of relief with the election results in the bag and allow ourselves to re-centre on fundamentals
The Tantallon India Fund closed 2.69% higher in May as markets sought to handicap the outcome of the recently concluded elections in the face of higher-for-longer inflation, increasingly confrontational geopolitics in Ukraine, Gaza and the South China Sea, and benchmark-focused investors being “herded” out of India into the “China hope” trade.
Anchored by our bottom-up stock-specific convictions, we have stayed locked in on trying to manage interim volatility while positioning the portfolio for policy continuity despite Prime Minister Narendra Modi securing a much weaker-than-expected mandate; sustained land, labour, tax, agricultural sector, and foreign direct investment reforms; and more development/social spending.
