Clear mandate would provide room for significant reforms and a broad based rerating in the markets

Views on the impact of election results on debt and equity markets from Rajesh Iyer, Head- Investments and Family Office, Kotak Wealth Management

Clear majority would boost sentiments and would have ripple down effect on the economy over the short term. Post initial euphoria it is the policy measures which would have real impact on the economy. For the bond market the budget would become crucial as the fiscal deficit number would actually indicate if there would be any additional govt. borrowing in the current fiscal compared to the one indicated in vote-on-account budget.

Clear mandate would provide room for significant reforms and a broad based rerating in the markets. Continue to be bullish with scope for Mid-caps and small caps to provide significant outperformance as investors start looking beyond large caps for alpha.

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