The final verdict is out, the Narendra Modi-led BJP has won the 2019 Lok Sabha elections with a landslide victory. Election commission data showed Modi’s National Democratic Alliance has secured 350 seats, with BJP alone winning 303 seats in the 2019 general elections.

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The clear electoral mandate given to the BJP and PM Modi in India's elections reduces political uncertainty and raises the potential for economic policy reform, according to experts.

BSE Member Ramesh Damani said he expects more foreign fund inflows into Indian stocks going ahead as there will be policy continuity and the deal flows are more likely to happen now.

"Now with uncertainty behind, the market will focus on steps taken by the Govt to encourage investment and give push to consumption, which is hitting a soft patch. The market is looking at the second term of Modi Sarkar to build on the foundation laid in the last term," said Damani.

Nilesh Shah, MD & CEO of Kotak Mutual Fund, said market believes that stage is set for accelerating growth.

"Changing the orbit of Indian GDP growth from current 7 per cent level to higher level (eventually to aspirational double digit growth) is what markets are expecting from the second term of the government," said Shah.

Samrat Dasgupta, CEO at Esquire Capital Investment Advisors said, “Getting the index to stay above 12,000 will be difficult for the market because now the reality will kick in, people will go back to results and global cues. I feel there is only limited upside.”

"I do not expect a big correction but definitely, some consolidation for the next couple of months before new cabinet's policies kick in. I feel one big uncertainty has been removed so it becomes a buy-on-dips market again’, added Dasgupta.

Meanwhile, Prabhudas Lilladher's Amnish Aggarwal said that BJP's win will add another 10 percent rally in the markets to 13,000 levels.

(With inputs from agencies)

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