Modi-Xi Handshake, Tax Cuts Boost Case for Lagging Indian Stocks

The article suggests that recent developments, including Prime Minister Narendra Modi's handshake with Chinese President Xi Jinping and tax cuts in India, have boosted the case for Indian stocks, which have been lagging behind their emerging market counterparts. The handshake between Modi and Xi is seen as a symbolic gesture that could potentially improve India's relationship with China, a key trading partner. Additionally, the Indian government's decision to cut taxes has been welcomed by investors, as it is expected to provide a boost to the country's economy and corporate earnings. The article indicates that these positive developments have fueled optimism among investors that Indian equities will be able to narrow the performance gap with other emerging markets. The article suggests that the combination of geopolitical and policy measures could provide a tailwind for the Indian stock market in the near future.