If one talks about the market and its uncertainties, one cannot miss that one of the most recurring aspects of such market turmoil is an unstable political climate in a country. A stable political climate is good for investment because it ensures the investors that the current economic policies of the government will not be gutted down all of a sudden, which gives them the opportunity to speculate and strategize their investment opportunities and encourages them to put in investments for the longer run.
PM Modi and his economic policies, as it has been pointed out many a time before, are pro-business and creates investment opportunity thus it is no wonder that this man and the party he represents like a blue-chip stock in the eyes of the market.
IL&FS, one of the leading financial services Company in this country also feels the same way. IL&FS’ Vibhav Kapoor while giving an interview to CNBC-TV 18 reiterated what many others have touched upon before. Vaibhav is of the notion that Nifty would touch a high of 13,000 points if the incumbent government, i.e Bharatiya Janata Party(BJP) retains power in 2019, but if the result is something which is other than the previously mentioned, Kapoor warned that the 50-Share Index can fall to 9,000 levels. Kapoor also stated his optimism in the rural sector and the infrastructure development. He mentioned how this rural infrastructural push has transpired into higher demands for raw materials and investments opportunities.
Kapoor here is just a representative of a sentiment widespread in the business community in India and abroad. The revolutionary changes brought in by the incumbent government which is not based upon political expediency but rather on the intent to reform the economy is unlikely to continue if the situation in Delhi changes. Thus, setting the clock back to how it was in pre-2014.
He is not alone many others have praised the incumbent government’s policy and applauded the economic overhaul Modi has brought in.