Traders Shy Away From Modi-Linked Stocks in Shift to Defensives
- Gauge of Modi stocks is underperforming since the June polls
- Local, global investors trim holding in infrastructure firms
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Investors in India are shunning stocks that were expected to benefit from Prime Minister Narendra Modi’s re-election, and instead piling into defensive sectors.
An index of the so-called Modi stocks, a term coined by CLSA, has climbed only 2% as the prime minister completed his first 100 days in office after winning a third term in early June. In contrast, consumer and software stocks have rallied 20% and 34%, respectively.