Number 303\nseems to have a special importance in world history. <\/p>\n\n\n\n
Not many of you might know that the British Army defeated the Nazis in World War II had employed the 303-rifle–the third most effective rifle of all times after AK-47 and M-16. Nonetheless, experts claim the 303-rifle has been the most destructive weapon on this planet. <\/p>\n\n\n\n
Similarly,\nby winning 303 seats at the Lok Sabha Elections 2019, BJP has wiped out all\noppositions parties. This has been the best performance by any single\nnon-congress party in the history of India. <\/p>\n\n\n\n
On the\nother hand, India\u2019s oldest political party couldn\u2019t open its account in 18\nstates.<\/p>\n\n\n\n
Some\npolitical analysts are calling it a mandate from new India.<\/p>\n\n\n\n
A few are\ncalling it a debacle for Congress.<\/p>\n\n\n\n
And others\nare calling it a mandate to finish the unfinished agenda. <\/p>\n\n\n\n
Looking at\nthe movement of stock indices post elections, it seems market is assuming this\nmandate to be the one for reforms and inclusive growth. <\/p>\n\n\n\n
Interestingly,\nModi 2.0 has spruced up its old slogan sabka\nsath sabka vikas<\/em> by adding the flavour of inclusiveness to it. Its new\nslogan is, sabka sath sabka vikas, win\nsabka vishwas. <\/em><\/p>\n\n\n\n Does that\nmean one can expect Modi 2.0 to be an autocratic but populist administration? <\/p>\n\n\n\n The chances\nare 50:50. <\/p>\n\n\n\n What can investors expect in the next five years?<\/strong><\/p>\n\n\n\n Certainly\nnot a miracle! <\/p>\n\n\n\n Although, NDA\nvoters are treating Mr Modi as India\u2019s messiah, the Modi 2.0 has a bumpy road\nahead. <\/p>\n\n\n\n Challenges before Modi 2.0<\/strong><\/p>\n\n\n\n What these challenges mean to markets?<\/strong><\/p>\n\n\n\n If the\nnewly elected government achieves even 50% of its stated objectives, India\nmight progress faster towards becoming a USD 5 trillion economy. However, if\nModi 2.0 fails to propel the sinking private sector capital expenditure and\nrevive demand in the private consumption, Indian voters are likely to be\ndisappointed, so as the markets. <\/p>\n\n\n\n Moreover,\nmarkets aren\u2019t cheap anymore and it\u2019s become clich\u00e9 to hear about the unimpressive\nperformance of corporate India. Lowering tax rates is a double-edged sword. The\ngovernment might have to weigh its options carefully. Markets don\u2019t like\ngovernments missing the fiscal deficit targets. <\/p>\n\n\n\n At the Price-to-Earnings multiple of 29x, Nifty 50, one of the most widely tracked Indian equity indices, looks expensive and might have already factored in some positives of Modi 2.0. Nonetheless, if Modi 2.0 delivers its promises and demand is revived, corporate earnings might improve substantially. In such a case, the PE ratio of Nifty 50 may cool off. <\/p>\n\n\n\n How should you position mutual fund portfolios?<\/strong><\/p>\n\n\n\n Number 303 seems to have a special importance in world history. Not many of you might know that the British Army defeated the Nazis in World War II had employed the 303-rifle–the third most effective rifle of all times after AK-47 and M-16. Nonetheless, experts claim the 303-rifle has been the most destructive weapon on…<\/p>\n","protected":false},"author":3,"featured_media":391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/383"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=383"}],"version-history":[{"count":6,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/383\/revisions"}],"predecessor-version":[{"id":393,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/383\/revisions\/393"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/391"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
In April 2019, as per the information released by the Centre for Monitoring Indian Economy (CMIE), the unemployment rate in India touched 7.60% -the highest since October 2016. And at most times the unemployment rate in the urban areas has registered a higher reading than the rural parts.
According to a CMIE report, the unemployment amongst those who have completed their graduation or higher education has been rising steadily since mid-2017.
This shows that India isn’t producing enough employment opportunities nor has there been much improvement in FY 2018-19. After recording a thumping majority in the Lok Sabha Elections, job creation will be an even bigger challenge for the Modi 2.0 government.
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