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State elections in India are likely to dominate the country’s progress on the economic and financial reforms implemented recently.
Over the next five weeks, more than 160 million will vote in five state elections. The elections will be key barometers of Prime Minister Narendra Modi’s reform agenda, particularly in the wake of the demonetization move last November.
A convincing performance by his National Democratic Alliance (NDA) will give the green light for continued tough albeit necessary reforms ahead of the 2019 general election. A negative outturn may thwart reforms and dent efforts to gain greater control of the Upper House, Commerzbank reported.
The improved macro picture has helped to support INR of late and this should persist. Meanwhile, the 30-share benchmark Sensex traded 0.19 percent lower at 28,385.01, while the 50-share benchmark Nifty futures traded 0.28 percent or 25.20 points down at 8,775.00 by 08:00 GMT.
