Weakening of Modi's grip on power seen hurting Indian stocks

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Investors see the upcoming Indian general elections as having a short-term impact on markets.

Men look up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange in Mumbai, India.

While investors see the vote – expected to be held in April-May – as a one-off event with a short-term impact on markets, concern over how much power may be ceded to smaller political parties has weighed on sentiment. Tata AIA expects the tension to add to market volatility amid the elections as well as ongoing China-US trade talks and rising oil prices.

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