India Today – Axis My India has released an exit poll summary indicating that Prime Minister Narendra Modi’s alliance, led by the BJP, will likely secure a majority in the general election.
Experts widely agree that the BJP is poised to form a government for the third term. However, the market has experienced some volatility, reflecting the ongoing debate about the margin of victory.
Harsh Gahlaut, Co-founder and CEO of FinEdge, said, “If the BJP comes to power with a single-party majority, we expect that the equity markets will respond positively. However, we do not expect a major upward move in the short term as this expectation is built into the markets. In the longer run, the continuity of BJP policies should augur well for the equity markets and, in turn, for mutual fund investors, as India should be rewarded for continuing down the high growth path.”
Gahlaut further stated, “If the BJP were to form the government for the third term with a clear verdict, we can expect investors to see high returns if they remain invested for at least another five years. In this scenario, they should continue to maintain an aggressive equity allocation in their mutual fund portfolios.”
He added that if the polls do not result in a clear verdict or a single-party majority for any reason, we could see a double-digit sell-off as an immediate impact.
The exit poll summary projects that the ruling National Democratic Alliance (NDA) could secure between 361 and 401 seats in the Lok Sabha, surpassing the 272 needed for a simple majority. Meanwhile, the opposition INDIA alliance, led by the Congress, is projected to win over 130 seats, according to the India Today – Axis My India poll summary.