The markets were preparing for this sort of a mandate, though not as bad as what has emerged today. They were expecting Bharatiya Janata Party (BJP) to lose in Madhya Pradesh (MP) and a loss in Rajasthan was priced in nearly two months ago. Chhattisgarh, where it was supposed to be a close fight, BJP has lost badly. On the contrary, it has done better in MP compared to expectations.
Markets like certainty, continuity and a stable government – whether at the state level or the centre – as long as it remains business-friendly. In case of a new government,