Dubai, United Arab Emirates: Ben Laidler, Global Markets Strategist at eToro, said: "Indian prime minister Narendra Modi has been elected to an unprecedented third term in the world's largest democracy. But the scale of his victory has fallen short of investors' high expectations and driven volatility across local stocks and the currency.

Indian stocks were near unique in having outperformed the juggernaut US stock market in recent years and commanding an even higher stock market valuation. As India's combination of strong GDP growth, youthful demographics, and reformist government have been catnip to investors.

The India ETF (INDA) has become the 7th most owned on the eToro platform by investors from the UAE, and the most popular not focused on US assets. And optimism was running high into the election, with the number of holders up 38% in the last three months, the most of all major ETFs.

A reset to these high investor expectations is to be expected, and any investment reallocation could benefit fellow emerging markets heavyweight China, which has recently returned to bull market territory. But India's long-term investment outlook looks secure with Modi's reform agenda potentially slowed but not derailed, and the GDP growth and demographic tailwinds still in place."

-Ends-

Media contact:
pr@etoro.com

About eToro

eToro is the investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have over 35 million registered users from more than 100 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.