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Anben: Key reforms expected to continue making progress after the Indian general elections, providing a good opportunity for investment in bonds in the market.
In terms of bond prospects, the election results have not had much impact, and the supply and demand situation for bonds remains very positive.
Kenneth Akintewe, Sovereign Debt Manager for Asia at Amundi, commented on the impact of the Indian election results on the market. He pointed out that assuming the final result is a coalition government gaining control of parliament, it is expected that India will continue to make progress in key reforms, with a stronger fiscal position providing important cushion. In terms of bond prospects, the election results did not have a significant impact, as the supply and demand situation for bonds remains very positive, with inflation and policy rates still inclined to decrease. In fact, rising yields and a weak currency reflecting market conditions do offer attractive opportunities to increase investments. He commented that this is a classic "buy on rumor, sell on news" market event, while also highlighting the difficulty of predicting political events. Food inflation remains high, agriculture is in distress, and the government has reduced subsidies, losing support in the agriculture-focused economic sector, so the election results were not entirely surprising. Similarly, he stated that while India has experienced high growth on the surface, not everyone has benefited, and consumption has not been as strong as expected. The election results will serve as a warning to the government and may become a key catalyst for government restructuring focus, but challenges remain. The election results also emphasize the need for manufacturing sector development to create more high-paying job opportunities, as well as the urgency to continue pushing for reforms. It is expected that privatizing state-owned enterprises and asset monetization will boost the local economy in India and provide the government with the resources needed for economic transformation.
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