India’s move to privatize flag carrier Air India Ltd. in its first big-ticket sale in almost two decades promises to further boost the appeal of the nation’s booming equity market just when China is intensifying its crackdown on private firms.
The high-profile sale puts investor spotlight on Prime Minister Narendra Modi’s aggressive reform agenda, as it shows that his plans to tap the private sector for the country’s assets are gaining traction. It could also pique interest in a number of state-run firms in which the government intends to divest stake, providing another potential catalyst to a market that’s rallied to successive all-time highs.
