Looking ahead to the upcoming annual Budget and beyond, we are optimistic regarding the continuity demonstrated by Om Birla’s re-election as Speaker of the House and the re-appointment of key ministerial positions. Despite Modi’s weaker-than-expected mandate, coalition concessions give hope for sustained reforms in land, labour, taxes, agriculture, and foreign direct investment.
The Tantallon India Fund closed 4.44% higher in June as markets quickly digested the disappointment over the elections, which resulted in a coalition government for Prime Minister Narendra Modi. Concerns had arisen about potential delays in anticipated land, labour and tax reforms.
We have been surprised by the quick snap-back. With markets up 13% from the post-election lows, the cash reserves we had maintained as a buffer against market volatility have been a drag over the last few weeks.
