BJP election victories fire up market, 'boost' investor sentiment

Results give message of political continuity and 'augur well' for macroeconomics, say analysts

Brokerages believe that the Bharatiya Janata Party’s (BJP’s) stronger-than-expected showing in state elections reduces political risks for the domestic markets going into 2024. However, after the short-term excitement, the focus will soon shift to earnings, global liquidity conditions, and the interest rate trajectory.

“BJP’s win in the three state elections is much better than what exit polls suggested and reinforces the consensus expectations of a Modi win in the 2024 national elections with a greater likelihood of 300+ seats for the BJP. This boost to investor sentiment should augur well for domestic cyclical sectors viz., banking, industrial, power, property, and