The results of the 2024 Lok Sabha elections have drawn significant attention from business leaders across various sectors in India, revealing a wide range of insights and expectations for the country’s economic and developmental path under the newly elected government. These leaders have voiced optimism regarding India’s economic prospects and the potential for sustained growth and stability.
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Quote by Mr. Devam Sardana, Business Head, Lemonn
“Traditionally, election years have been beneficial for the stock market. Over the past 4-5 years, the lowest gain for the Nifty has been 13%. In the current election period, from January 1st to May 31st, the Nifty gained only around 4.5%. This suggests that there is still room for growth. On June 3, the Nifty experienced a single-day gain of 3.25%, indicating a potential for further growth. Historically, India has been a promising market for small-cap stocks. However, India is now a quasi-large cap market, which may lead to reduced volatility in the coming weeks. Foreign investors are likely to be interested in India due to the government’s focus on manufacturing, infrastructure, and investment. Key sectors to watch include capital goods, infrastructure, and manufacturing, particularly PSU companies.
The government has demonstrated its commitment to increasing capital expenditures, with a record spend of over 11 trillion INR in the last 6-7 years. This is expected to be aided by the 2 trillion INR dividend from the Reserve Bank of India. Despite some initial fears about mid-cap and small-cap stocks, stability is likely to return in the next 2-3 weeks. There may be some short-term profit booking, but the themes of manufacturing and infrastructure will continue to drive growth across large, mid, and small-cap companies. Overall, the market is poised for new all-time highs due to the stability in the economy, GDP numbers exceeding forecasts, and foreign investors’ interest in India’s growth story.”
Quote by Mr. Rahul Mathur, Senior Partner, TRANSEARCH India,
“The Indian electorate has demonstrated its maturity and decisively asserted its democratic credentials. By choosing continuity with the present government, the electorate has signaled a vote of confidence in the current leadership’s policies and direction. This continuity is particularly favorable for the business community, as it provides a stable and predictable environment that is conducive to investment and growth. We can expect the economy to continue heading in the right direction, benefiting from consistent governance and policy implementation.”
Quote by Mr. Ricky Vasandani, CEO and Co-Founder Solitario
“The continuity of the present government is promising to the development for the future of the lab-grown diamond industry in India. Building on the measures taken during their last tenure, we anticipate extended support and innovation in this sector by the new administration as well. So far, the lab-grown diamond industry has seen some great initiatives for the industry with the elimination of customs duties on essential seeds demonstrates a clear vision for establishing India as a global leader in sustainable, high-quality lab-grown diamonds. We expect that the union continue to pave the way for significant growth and reduced import reliance, ultimately making India a powerhouse in the lab-grown diamond market.”
