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Below is the views on Election results 2019 by Mr. R. K. Gurumurthy - Head Treasury, Lakshmi Vilas Bank
“The final outcome of General Election-2019 came in with an overwhelming verdict in favour of the ruling party. While there was little doubt about the verdict, the landslide victory margin is an endorsement of the faith the populace had in the ruling government.
The results will reinforce the conviction of the investor community in India’s reforms and growth. After the initial euphoria, markets may see some profit taking and remain somewhat volatile until we have clarity on who will hold key portfolios in the new ministry. Financial markets will turn focus soon over the RBI MPC in early June as measures for improving liquidity in the system and addressing issues relating to weak growth in a low inflationary environment are anticipated. Key concerns are how the Fiscal Deficit will pan out.
Against a backdrop of tepid, trade-war ridden global economic growth scenario, it remains to be seen how we will move out of the 7-8% range into a higher platform. The strong majority arising from the poll-verdict would pave way for second round of reforms and economy would therefore benefit immensely.”
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