In the recent Lok Sabha election, the BJP failed to secure a majority on its own and had to rely on its allies. The unexpected outcome of the election led to a significant decline in the Indian stock market, one of the largest in history. Experts anticipate continued market fluctuations in the near future, but they expect stability to return once the new government is formed.
As attention shifts to the upcoming budget, brokerage firm Motilal Oswal predicts a resurgence of bullish sentiment in the market after the initial turbulence settles. The forthcoming budget, expected to be presented by the new government in a few weeks, is likely to prioritize capital expenditure, production, and rural development initiatives.
Entrepreneurs are looking for policy continuity and economic reforms from the new government. They hope for the continuation of initiatives like the Production Linked Incentive (PLI) scheme, which has been instrumental in promoting industrial growth. Business leaders like Nadir Godrej and Anuj Puri emphasize the importance of a stable government for the real estate industry, ensuring that ongoing projects and schemes remain unaffected.
In the insurance sector, experts believe that regardless of which political alliance comes to power, it will not hinder the growth of the insurance business. Vibha Padalkar, Managing Director of HDFC Life Insurance, underscores the sector's commitment to achieving universal coverage by 2047 under the guidance of regulatory bodies.
Overall, while the election outcome may have caused initial uncertainty, businesses across sectors are hopeful for stability and continuity in government policies to sustain growth and development initiatives.