JPMorgan Says Buy the Dip If India Poll Volatility Hits Stocks

Investors should use any swings in Indian stocks during the weekslong election as an opportunity to buy, according to JPMorgan Chase & Co.’s private banking unit.

The South Asian nation, which has been a favorite pick among investors looking away from China, is set to kick off nationwide polls from Friday with votes to be counted on June 4.

Prime Minister Narendra Modi-led Bharatiya Janata Party is widely expected to win a third term, which will help his administration continue its focus on modernizing infrastructure and boost manufacturing. Indian equities have risen to records this year following a rally driven by robust economic growth.

“We remain convinced of the structural growth opportunity in Indian equities,” Alexander Wolf, head of Asia investment strategy at JPMorgan Private Bank wrote in a note. “Long-term investors could be at least ‘neutral’ relative to the benchmark, and a strategic ‘overweight’ is warranted in our view.”