Modi’s Bharatiya Janata Party (BJP) has once again emerged victorious in India’s 2019 national elections. This better-than-expected outcome will be taken as proof that Modi’s popularity continues to work. Markets have reacted favourably; Indian stock markets are off to a roaring start.
With a backdrop of tepid global growth, volatility and uncertainty, Asia remains one of the few reliable sources of growth today. Forecast to continue to grow faster than the rest of the world, we still see a huge number of opportunities for companies to take advantage of Asia’s structural economic growth story. We believe investors can capture this exciting return opportunity by investing in Asia’s smaller companies. But simply focusing on company growth is not enough for equity investors in this space to make the best returns.