Voting for the seven-phase Lok Sabha elections concluded on Sunday and most exit polls have predicted a thumping win for the Bharatiya Janata Party-led National Democratic Alliance (NDA).
Punita Kumar Sinha of Pacific Paradigm Advisors in an interview to CNBC-TV18, spoke about the Indian economy, markets and the road ahead for the new government.
Sinha said, "If a strong government comes back to power, that one uncertainty that was being priced in and was causing certain valuation gaps from the fair value of companies, that will get corrected now.
"Once it gets corrected then you are back to business as usual and you will have to focus back on what is happening company by company and what is going to happen globally as well. Globally also things are very important to watch."
She added: "Definitely there is some slowdown in the economy, one cannot deny that and that will be addressed by the new government as a key priority. I am sure any government who comes to power is going to focus on that.
"However, globally other than the US most countries are seeing some form of a slowdown and inflation has been generally low across the world. So, now people are talking about whether interest rates are too high and should be coming down and that is a debate that is happening in the US as well whether the trajectory we were on of raising rates in the US and should that reverse in fact.
"In India too there are going to be measures that can be put in place to hopefully stimulate the economy some more. However in absolute terms, India is growing still at one of the best growth rates compared to the rest of the world. With all the trade wars that are out there, a lot of economies are getting impacted negatively."
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