The wait between India’s first voting day in April and the official results on May 23 would keep most investors at bay. For Rahul Singh at Tata Asset Management Ltd., chief among his concerns is the possibility of a deadlock on who leads the world’s largest democracy.
“The biggest risk to the recent gains in Indian equities is there may be a hung parliament," Singh, the chief investment officer, said in an interview at his office last week. “In that case, though a very small probability, nothing will hold the market and it will be in trouble if some weak leader emerges to lead a government that may not last even for a year."
