Lok Sabha Elections 2024: European Firm SocGen Downgrades Indian Market Ratings

03 Dec, 2023 Author: Ayushee Joshi

Lok Sabha Elections 2024: Next year, general elections will be held in Indonesia in addition to India. Ahead of the general elections, the Societe Generale SA’s investment strategists had downgraded the ratings of the Indian and Indonesian markets, citing the likelihood of weakness related to the upcoming elections in both of these countries. In 2024, Indonesia will hold elections in February, while India will hold elections in April or May.

India’s Ratings Fall to Neutral

India’s rating was downgraded from “overweight” to “neutral” by the European Bank. Indonesia's rating has been reduced to “underweight” because of the country's low earnings outlook and political unpredictability. The Societe Generale report noted that many global markets will face major challenges in the future, one of which being the elections of 2024. Taiwan will hold elections in January, and the US will hold elections for president in November of the same year. In addition, there is a general lack of certainty around interest rates set by the US central bank Federal Reserve.