Investors excited about Modi's reform agenda.
We are sceptical of the view that a Modi-led government would bring about India’s Margaret Thatcher moment. As we have argued elsewhere, the Congress Party model of gradual reform with a generous dose of welfare spending is firmly entrenched in India’s political economy. We think it unlikely that a mass party such as the BJP could change direction without generating political turbulence. (India 14 May 2014)
Sensex jumped from 20,000 to 25,000 as Modi's election became likely. The market peaked at 30,000 in March 2015 before falling back to 23,000 in Feb 2016.