Brokerages bullish despite BJP falling short of mandate in LS elections

Analysts expect India's macro stability to remain intact but see a hit to India's premium valuations

Brokerages remain positive on India’s prospects despite the Bharatiya Janata Party (BJP) falling short of a decisive mandate even though some see a hit to India’s valuation premium and near-term consolidation.

Some analysts feel the strong earnings and economic growth trajectory remains intact and investors can look to buy into any election-related weakness as the momentum is set to continue.

A few brokerages, however, have raised concerns over a possible increase in outlay towards social schemes and subsidies.

“The BJP is falling short of a majority but our base case is that the BJP-led National Democratic Alliance (NDA) is likely