Bond Vigilantes Stir as Weak Modi Win Fans Populism Fear
- Bond investors were hoping for cut in borrowing in the budget
- ICICI Prudential closes 10-year bond duration call on result
Outside the Bombay Stock Exchange (BSE) on the day of India's general election result in Mumbai on June 4.
Photographer: Punit Paranjpe/AFP/Getty Images
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A smaller-than-expected poll victory for Prime Minister Narendra Modi is leading to worries among bond investors about greater populism impacting India’s debt dynamics.
Fiscal discipline has been a hallmark of Modi’s decade-long administration, and many investors were expecting him to win a supermajority enabling him to further cut government borrowing in the next budget.