What do fewer votes for NDA mean for India and investors? Abakkus’ Sunil Singhania decodes

The benchmark equity index BSE Sensex crashed more than 5,000 points intraday on Tuesday after the vote counting trends showed that Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP)-led alliance is unlikely to win a decisive majority as predicted by the exit polls over the weekend.

Midway through the counting at around 1.25 pm (IST), the NDA led with 289 seats, while INDIA was ahead with 236 seats. Most exit polls had predicted that the NDA could win over 350 seats, and some even predicted that the tally could cross 400 out of 543 seats.

So what does the fewer seats mean for investors? In an interaction with BTTV, Sunil Singhania of Abakkus Asset Manager LLP, said the election has come as a surprise for the markets.

The ace investor believes that despite the electoral outcome, the fundamentals of the economy remain intact. Regardless of the ruling party, continuity in policies is anticipated. “We have gunpowder ready. We are ready to invest if we get opportunity and clarity,” he said.

Looking ahead, Singhania said that the monsoon outlook is good. Post-election, people are expecting consumption to pick up. Sharing his insights with new investors, Singhania advised them to keep patience and zero in on value and earnings growth rather than chasing overnight riches based on rumours.

He added that India will continue to grow and may become a $7 trillion economy in the foreseeable future. Despite temporary fluctuations, Singhania maintained its bullish view of India’s investment landscape, highlighting the sustained demand for development and infrastructure.

“Investors should understand that the growth of the economy is not going anywhere. The entrepreneurial spirit will continue. We are not here to play a near-term kind of thing,” he said, adding that everyone wants development, and this will continue.

He also added that everyone is looking to invest in India, and that will not change. “Maybe it will defer by 1 or 2 months. But the trend will continue. In addition to this, people are now demanding better infrastructure. For example, people want Vande Bharat-style trains, and people are also demanding more airports. These are all necessities, not luxuries. This is a different India, which we are seeing,” Singhania said.