//After pouring $45 billion into India’s stock market over the past six years on hopes that Modi would unleash the country’s economic potential, international money managers are now unwinding those wagers at the fastest pace on record. They’ve sold $4.5 billion of Indian shares since June, on course for the biggest quarterly exodus since at least 1999.//
//“The euphoria around Modi before 2014 has tapered off,” said Salman Ahmed, the London-based chief investment strategist at Lombard Odier Investment Managers, which oversees about $52 billion.//
//While Modi isn’t sitting idly by as the economy weakens, investors say he’s been slow to act on a long list of needed reforms that includes selling stakes in state-owned companies and revamping the nation’s labor laws. The growing worry is that India could be headed for a structural slowdown that pummels the country’s $2 trillion stock market, throws a wrench into growth plans of international companies from Amazon.com Inc. to Netflix Inc., and makes it increasingly difficult for Modi’s Bharatiya Janata Party to deliver jobs for the millions of young Indians who enter the workforce every year.//
//Subramanian Swamy, a BJP lawmaker, spoke bluntly about the risks of inaction in an interview with Bloomberg Quint published Sept. 5: “If the economy is not rectified, Modi has about six more months till people start challenging him.”//
//The BJP leader, who turned 69 on Tuesday, has won plaudits for cementing an inflation target that’s kept prices in check, passing a new bankruptcy law and recapitalizing the nation’s troubled lenders. But the revolutionary changes that many investors expected from Modinomics have so far failed to materialize.//
A $45 billion bet on Narendra Modi’s India is rapidly unwinding
