Under Prime Minister Narendra Modi, India’s stocks have commanded an unprecedented premium to emerging-market peers. As he seeks a third successive term, investors are betting that the performance can continue.

Modi is likely to spend heavily on manufacturing and infrastructure should he win, continuing a strategy that wooed money managers during his decade in power. The stock market has rallied to successive records, while India’s imminent inclusion in a major global bond index is expected to lure billions of dollars in inflows.