CNBC’s Inside India newsletter: Modi’s loss could be India’s gain
![CNBC's Inside India newsletter: Modi's loss could be India's gain CNBC's Inside India newsletter: Modi's loss could be India's gain](https://image.cnbcfm.com/api/v1/image/107423984-17175175832024-06-04t154937z_2091781776_rc2f48adj852_rtrmadp_0_india-election-modi.jpeg?v=1717517653&w=1920&h=1080)
Indian Prime Minister Narendra Modi gestures, at the Bharatiya Janata Party (BJP) headquarters in New Delhi, India, June 4, 2024.
Adnan Abidi | Reuters
This report is from this week’s CNBC’s “Inside India” newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Like what you see? You can subscribe people have been asking her after Modi’s weaker-than-expected election win. From New Delhi, CNBC’s Sri Jegarajah reported that the prime minister will need to lean into his 25 or so alliance partners to realize his economic vision.
CNBC’s Sumathi Bala reported on the challenges Modi faces with cajoling smaller parties, some of whom may not share his economic or political agenda for the country.
Meanwhile, CNBC’s Global Markets Reporter Seema Mody reported on the concerns of some U.S. investors that have spent time and money into relationships with India.
For CNBC Pro subscribers, Amala Balakrishner spoke to investors who named their 10 stock picks in the infrastructure sector, the digital economy and the startup ecosystem, as well as the consumer discretionary sector.
What happened in the markets?
Indian stocks have recovered from the 6% loss on election results day. The Nifty 50 index is heading for a 1.3% gain this week. The index has risen 5.16% this year.
The benchmark 10-year Indian government bond yield has remained relatively subdued, with a yield of 7.02%, marginally higher than last week.
On CNBC TV this week, the chief executive of privately-held Akasa Air said India’s aviation infrastructure should keep pace with aircraft orders for the next seven years. Vinay Dube added that that’s not a statement he could’ve made five or seven years ago.
Meanwhile, James Sullivan, head of Asian Pacific equity research at JPMorgan, told CNBC that India’s GDP growth is not as dependent on oil consumption as before. This “radical transformation” is expected to lead to a significantly more efficient economy and help India’s currency, according to Sullivan.
What’s happening next week?
India’s central bank will meet to set interest rates on Friday. Economists polled by Reuters expect the RBI to hold rates at 6.50%.
The U.S. Federal Reserve is expected to hold rates when it meets next week.