Market is 'getting ahead of itself' on Modi victory: Strategist

As Prime Minister Narendra Modi has declared victory for his alliance in India's general election, Global X ETFs Senior Portfolio Manager and Head of Emerging Markets Strategy Malcolm Dorson joins Market Domination to discuss the outcomes for the country's economy. Dorson notes that "the market was very enthusiastic and excited" about Modi's victory on Monday night, rising about 4%. However, as the official vote count rolled in, it revealed that Modi won with a smaller margin than originally thought, and the market fell about 6%. "Big picture, I think the market's getting a little bit ahead of itself. Modi is still in power. A coalition government isn't necessarily a bad thing. It provides a good system of checks and balances. And big picture, India isn't a two-week story. This isn't a one-week election story. This is a 20-year story that's probably the best structural setup that we see in the world," Dorson explains. He adds, "It's benefiting from not only democratic elections, but a market-friendly government, very attractive demographics, momentum out of China in terms of manufacturing and supply chain diversification, and a very unique digital stack that's well ahead of its curve." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl