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The composition of the new Cabinet under Prime Minister Narendra Modi indicates “policy continuity” at the moment, global brokerage and investment major Nomura has said.

The new Cabinet includes 30 Cabinet Ministers, five Ministers of State with Independent Charge and 36 Ministers of State.

Nomura has kept its portfolio unchanged on expectations of political continuity, predicting that Nifty 50 could breach 24,860 by the year-end

“Through the course of the past week, we think the concerns have abated. The composition of the Cabinet over the weekend also indicates policy continuity at the moment,” according to Nomura.

The brokerage is constructive on domestic sectors, such as manufacturing or investment themes over consumption.

Assuming policy continuity, stable macros and sustained earnings growth, we are positive on equities, according to the brokerage firm.

Nomura said that the union budget is likely to highlight the policy direction, “which we expect to remain largely unchanged”.

“The government is likely to pursue fiscal consolidation and prioritise investments/capital expenditure," said the brokerage firm.

Leading global brokerage firms and market analysts have already said India’s economic fundamentals remain strong.

According to an earlier note by Nomura, reforms in India have generally survived the test of politics and “we expect the government to continue the pace of governance and administrative reforms, leaving states to work around the more intractable reforms around land and labour.”