BJP’s seat loss not a major disruption, says GQG Partners' Rajiv Jain

Rajiv Jain, Chairman & CIO, GQG Partners

BJP's seat loss was surprising but not drastic in the historical context, Rajiv Jain, Chairman and CIO of GQG Partners told Bloomberg. With pro-growth partners like Chandrababu Naidu supporting Prime Minister Modi, the economic growth agenda remains largely unchanged, he said.

"The economic growth agenda does not change one bit. Some of the major big-picture reforms might get pushed back, but they don't impact the market as much," Jain said.

Apart from the surprising results of the Indian elections, Jain also shed light on the implications of other recent global developments.

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Jain pointed out that concerns in Europe, such as constitutional changes in Mexico and geopolitical tensions, are crucial factors in their top-down analysis. He said that European elections don't drastically change growth trajectories due to persistent issues like energy costs and inflation.

Jain is of the view that regulatory changes under different administrations in the US might have a less pronounced impact compared to Europe.

Discussing the US-China relationship, Jain noted that it remains on a consistent trajectory despite fluctuations in rhetoric. He said that their relationship does not significantly impact the growth drivers in US equity markets, particularly in the tech sector and large banks.

Jain expressed cautious optimism about China as an investment opportunity, favoring state-owned enterprises over private sector investments due to increasing concerns.

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