the markets rallied wildly with the Sensex jumping more than a 1000 points in early morning trading before ending the day 250 points up. The fall is most likely due to investors locking in profits after the huge surge in the morning, although it could also have to do with the expectations investors have on how many seats the NDA will actually grab and whether the BJP will, on its own, be able to grab the required 272 seats on its own.
That being said, consolidation is the last thing on the market's mind right now. We can expect the market to be bullish for weeks to come as the market fully digests the implications of a BJP-NDA led government let my Modi. Banking, infra, and retail can expect to see huge rallies through the end of May before consolidation finally kicks in. We can expect export driven stocks to remain flat as the Rupee possibly strengthens and IT firms realize that other sectors are bound to fare better under the new government's economic policies.
Harsha Upadhyaya, Chief Investment Officer - Equity, Kotak Mutual Fund.
The decisive verdict of Indian electorate is definitely positive for our economy as well as markets. Over the next few weeks, the focus will be on news flow from new government with respect to their policy initiatives. Despite equity market at new high, we believe there is upside in equities given reasonable valuations and expected improvement in fundamentals
U.R. BHAT, MANAGING DIRECTOR, DALTON CAPITAL ADVISORS, MUMBAI
"Immediate challenge is to just meet expectations as they run pretty sky-high for this government.
"The balance between centre-state government, fiscal and governance deficit, will be important issues to handle by the new government.
"Foreign investors are looking for new government to address the subsidy regime, infrastructure management, fiscal situation and tax issues."
NAVNEET MUNOT, CHIEF INVESTMENT OFFICER, SBI FUNDS MANAGEMENT, MUMBAI
"The results look very orangey and rosy for the markets. Completely better than what markets would have anticipated.
"He can afford to have a smaller but stronger cabinet, that means a far more decisive government. He has been saying less government and more governance, we are really likely to see that. The speed of decision making and execution is something that will clearly be visible right away."
AJAY KAUL, CHIEF EXECUTIVE OFFICER, JUBILANT FOODWORKS , NOIDA
"A clean mandate will help the government to be decisive with reforms and that is crucial given our past experiences in this