Elections & markets: Challenges for Modi 2.0 and key investment themes

Market veterans have called for improvement in ease of doing business and policies to encourage FDI flows to invest in long-gestation infrastructure projects and recapitalise financial firms.

Equity market scripted history on Thursday, as both benchmarks – the S&P BSE Sensex and Nifty50 – scaled new milestones of 40,000 and 12,000 levels, respectively after the election results showed Narendra Modi-led NDA clear winner in the Lok Sabha elections 2019. The poll outcome was better-than-expected and improved upon the exit polls’ tally released last Sunday.

Most D-Street experts welcomed the election verdict as the mandate was clear and was even better than what the NDA got in 2014. However, they cautioned that the next five years will be more challenging for the government, as the economy is facing