The US President’s unsettled administration has impacted international finance, with the Trumpflation trade unwinding dramatically this year. There was more turmoil this week with key industry leaders ending their association with Trump’s business council. Markets are now speculating the exit of Gary Cohn (ex. Goldman Sachs executive) in charge of the economic plan for Trump administration.These high profile exits leave markets wanting for direction on policy.
A similar situation unfolded in Indian IT services firm, Infosys. The CEO, Dr. Vishal Sikka’s resignation took markets by surprise with the stock losing significant value intraday. Markets will now wait for the next person to set the new narrative and guide investors on the company’s plans.
One place where the narrative remains intact and continues to solidify is the one established by PM Narendra Modi in 2014. His Independence Day speech reiterated the government’s plans to bring urban infrastructure to rural India, and the steady resolve to shrink the black economy. While the results are not yet visible, there are signs that we are heading in the right direction. This is no doubt a reassuring point for both domestic and foreign investors alike.
Watch out for
RBI annual report (end August) – for details on currency management
Q1FY18 GDP result (end August) huge theme that is biggest in India. And no other country has that combination of those three things.