Markets not yet factoring a major upset for BJP in upcoming state elections

The polls are being viewed as a run-up to the general elections scheduled for May 2019 and will test the popularity of the government and its policies amid rising crude oil prices

Markets have not yet factored in a major upset for the ruling Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) in the coming elections in Chhattisgarh, Rajasthan, Madhya Pradesh, Mizoram, and Telangana, claim analysts.

These state elections are being viewed as a run-up to the Lok Sabha elections, slated for May next year. Experts believe these will test the popularity of the government and its policies amid rising crude prices that might lead to inflation, turmoil in the banking sector and non-banking finance companies, and a falling rupee.

“The markets are gradually realising that it will not be easy for the NDA