'Little room for further gains': Bernstein report as NDA eyes over 400 seats in Lok Sabha elections 2024

The Bernstein Societe General Group's latest India Strategy study said the NDA secured an overwhelming bulk successful cardinal states successful 2019 elections, leaving small country for further gains.

The study delves into the intricacies of the governmental landscape, analysing assorted factors that could power marketplace sentiments and economical policies successful the coming years.

The Bharatiya Janata Party, which has astir 99 per cent of seats successful 8 important states – Gujarat, Rajasthan, Bihar, Uttar Pradesh, Madhya Pradesh, Maharashtra, Chhattisgarh, and Haryana – is apt to look much situation than anticipated to grow its stronghold to scope the coveted "Plan 400" target.  

The NDA requires an further 50 seats to surpass its erstwhile election's tally, which is wherefore the Bernstein study – How?

While the confederate belt, peculiarly Andhra Pradesh, Telangana, and Odisha, presents an accidental for growth, the study emphasizes that securing gains successful these regions volition not beryllium a cakewalk.

Market projections 

According to the Bernstein report, contempt the optimistic projections, the markets whitethorn not spot a important summation successful seats from low-penetration states, offsetting imaginable losses successful different regions.

While a short-term affirmative absorption is expected if the predetermination results align with existent estimates, a profit-booking signifier post-elections is anticipated.

The study has predicted a humble downside successful the marketplace arsenic the macroeconomic fundamentals stay strong.

It besides said that the marketplace expectations person reached a highest arsenic the sentiment polls person projected a resounding triumph for the ruling coalition.

However, the study reflects ambiguity connected the sentiment polls being excessively optimistic and highlighted imaginable challenges successful achieving the projected gains.

A script wherever the ruling enactment secures astir 300 seats (approximately 350 for NDA) could trigger a correction successful the markets, which person factored successful a fig person to 400.

While continuity of powerfulness is expected, a below-consensus effect whitethorn pb to a marketplace reaction, signaling the extremity of the existent frenzy.

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Published: 20 Apr 2024, 08:43 PM IST