Narendra Modi Best Thing For Stock Markets: Experts


Narendra Modi is set to win an absolute majority in the 16th Lok Sabha, votes for which are being counted on Friday. The BJP is heading for a simple majority on its own as it is leading in over more than 272 seats. Mr Modi is likely to get an unfettered mandate to launch his agenda to revive growth and create jobs, analysts say.

The benchmark Sensex rose as much 6.1 per cent, hitting a record high. The partially convertible rupee rose to 58.68 per dollar, its strongest level in 11 months. The benchmark 1-year bond yield dropped 9 basis points on the day to 8.69 per cent, its lowest since February 11. (Track markets)

Mr Modi has promised to unblock stalled investments in power, road and rail projects to revive economic growth that has fallen to a decade low of below 5 per cent.

Mr Modi has promised tax and labour market reforms, backed by a gradual opening up to foreign investment and seeks to create 10 million jobs to employ young people entering the workforce.

Here’s what the country’s top fund managers and economists have to say about Mr Modi’s phenomenal victory and the challenges he faces ahead.

Phani Sekhar, Fund Manager, Angel Broking: The market in a romantic state, it needs to tone down its expectations. The biggest worry in immediate short run will be inflation, as CPI (consumer price index) has again gone up in April and there is El Nino prediction and RBI is giving indication that it might raise rates. I do not get the rally in state-run stocks. Most of them have run up on valuations and disinvestment hopes, which is not sustainable.

Ranjit Shahani, Managing Director, Novartis India Ltd: A stable government at the centre augurs well for the economy. India has a catch-up game to play and our time starts now….

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