NEW DELHI: Narendra Modi-led National Democratic Alliance (NDA) government was set to return to power as it led in over 300 seats while the
Congress trailed far behind with less than 100, according to trends released for all 542 seats that went to polls.
If the trends stay until final results, the BJP would improve on its 2014 performance when it had won 282 seats on its own in the 543-member
Lok Sabha. Adding the seats won by its allies, the BJP-led National Democratic Alliance could win 343 seats, up from 336 in 2014, PTI reported.
Here’s how Dalal Street and India Inc biggies had to say on BJP’s sweeping win:
Rakesh Jhunjhunwala, Billionaire Investor
Mother of all bull market is still ahead of us. Earnings recovery will surprise D-Street in the coming years. We are going to see good economic policies and creation of far more prosperous India. Tension between the US and China is an opportunity for India. We are on track to achieve highest growth ever in next decade.
Motilal Oswal, CMD, MOFSL
This is a new beginning not only for the market but for the whole country. India is on the way to be a super power leading the world.
Porinju Veliyath, Founder & CEO, Equity Intelligence India
NDA 2 is good for the country and investors are going to like it. BJP manifesto clearly said major infra push and they will. This is the sector that investor should really watch for. Market participants should explore for margin of safety and order book in the infra space.
Nilkhil Kamath, Co-Founder & CIO, Zerodha
The elections have played out in line with consensus opinion, BJP looks like they will have a majority even outside the alliances that form the NDA. Consistency in leadership is a positive for the economy overall and should shore up sentiment amongst foreign investors. This could lead to Rupee strengthening and benchmark yields coming down over the short term. Stock might have run up ahead of fundamentals buoyed by sentiment over the short term. It might be prudent to wait for the inherent fundamentals to catch up before waging big directional bets on the market right now.
Ajay Bodke, CEO, PMS Prabhudas Lilladher
A Herculean challenge awaits the newly elected government on the economic front. Problems galore and addressing them on a war footing to rev-up the fast slowing economic engine with faltering consumption, moribund private sector investments & anemic exports should be the first priority. With limited fiscal space & build-up of massive off balance sheet liabilities, a focused effort to address strong & sustained revenue mobilization is necessary. Necessity to expend political capital very early-on to tackle factor reforms like land & labour to help generate employment opportunities for tens of millions of semi-skilled & unskilled workers is called for.
Rusmik Oza, Head of Fundamental Research, Kotak Securities Ltd.
With NDA coming back into power we can expect local investors to take comfort in the midcap & smallcap spaces with a longer 2-3 year horizon and inflows could resume in them. Based on our reading of BJP’s manifesto and interim budget, we feel the following sectors could benefit the most in the next one year: capital goods, construction, building materials, corporate banks, power equipment, housing finance companies.
Surendra Hiranandani, Founder and Director, House of Hiranandani
We expect that the new government can do away with unnecessary documentation which will help real estate players immensely. It is important that single-window clearance is soon put into practice which will not only resolve operational issues prevalent in the industry, but would improve the productivity of the real estate industry. Currently, the permissions are coming at a snail’s pace. Real Estate sector stands amongst the critical sectors in terms of investments and employment and we look forward to initiatives that would further aid to the growth of the sector in the near future.
Amnish Aggarwal, Head of Research, Prabhudas Lilladher
Election results are positive for the market as it gives a stable govt for the next five years. However, post initial euphoria, focus would shift to hardcore economic decisions and the manner in which slowdown and economy is handled in
Modi 2.0.
Vivek Ranjan Misra, Head of Fundamental Research, Karvy Stock Broking
With a clear mandate, confidence among corporate and capital markets should improve. Expectations are a strong force and can aid in a recovery from the cyclical slowdown the economy is going through. With a pause we expect markets to do well in the coming months. Investors who have been on the sidelines for the election outcome should start investing again, and the midcap and small cap space should benefit from a risk on scenario and lower valuations. We expect flow from both domestic and the foreign investors to remain stable and may rise once the headwinds from the domestic and global front eases off.