BJP's Strong Victory in Delhi Boosts Market Sentiment
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Synopsis
The BJP's decisive victory in the Delhi assembly elections is poised to positively impact market sentiments and attract foreign institutional investments. This significant win alleviates concerns from previous election outcomes and points towards a robust economic outlook in India.
Key Takeaways
- Decisive mandate for BJP in Delhi boosts market confidence.
- Foreign institutional investors are likely to increase their investments.
- BJP's vote share rose to 45.6%.
- AAP's performance declined, securing 22 seats.
- Government reforms aim for a stronger financial sector.
New Delhi, Feb 10 (NationPress) The overwhelming mandate in support of the Bharatiya Janata Party (BJP) during the Delhi assembly elections is expected to create a positive sentiment in the markets and may serve as a catalyst for attracting foreign institutional investor (FII) inflows, a report revealed on Monday.
While the exit polls had correctly forecasted the election results favoring the BJP, the actual number of seats won was notably higher at 48 out of 70 assembly seats, as per the report by JM Financial Institutional Securities.
The current ruling party, AAP, managed to secure only 22 seats, while Congress was unable to gain any.
The BJP’s vote share increased to 45.6 percent, whereas AAP saw a decline.
According to the report, “The decisive mandate in Delhi, along with comfortable victories in Haryana and Maharashtra, alleviates concerns that arose following the underwhelming performance of the BJP in the General Elections 2024, making it sentimentally positive for the markets.”
The ruling AAP was limited to just 22 seats, a significant drop from 62 seats in the previous assembly elections of 2020.
The BJP has steadily increased its vote share over the last three assembly elections, from 32.3 percent in 2015 to 38.5 percent in 2020, and now 45.6 percent in 2025.
Meanwhile, AAP’s vote share has consistently declined from 54.3 percent in 2015 to 53.6 percent in 2020, and down to 43.6 percent in 2025.
“The decisive mandate is expected to bolster market sentiments: BJP’s success in the recent state elections in Haryana and Maharashtra has mitigated fears stemming from the disappointing results in the General Elections 2024,” the report stated.
Foreign investors are primed to invest in the Indian stock market, seeking substantial and effective long-term returns.
The government has laid out a clear roadmap for the ‘Viksit Bharat’ vision, implementing sound and innovative reforms to strengthen the financial services sector, make it more inclusive, and enhance foreign participation.
