Markets likely to extend gains on BJP’s poll wins

The domestic equity markets are expected to extend gains following the strong showing of the Narendra Modi-led Bharatiya Janata Party (BJP) in the state elections – a crucial precursor to the general elections in May. The BJP decisively secured victories in three of the four key states – Madhya Pradesh, Rajasthan, and Chhattisgarh. While the battles in these three states were closely contested, the scale of the BJP’s triumph has surprised many, heightening expectations for regime continuity in 2024 – a positive catalyst for the markets.