Poll impact: Sunil Alagh says investors bet big on stability, credits PM Modi for record market surge

Sunil Alagh emphasized Prime Minister Narendra Modi's success in providing a sense of stability, a quality highly valued by both domestic and foreign investors.

As the dust settles on the state assembly election results, Sunil Alagh, an Independent Business Consultant, shared exclusive insights with Moneycontrol, shedding light on the implications of these outcomes for the upcoming 2024 general elections and the potential impact on Prime Minister Narendra Modi's image.

Investor confidence in stability

Discussing Nifty and Sensex's surge to a new record high following the BJP's state election performance, Alagh highlighted that the positive market response is a result of investors seeking stability. He emphasized Prime Minister Modi's success in providing a sense of stability, a quality highly valued by both domestic and foreign investors. The confidence in a continued period of stable governance is expected to attract investments, particularly in infrastructure projects, he further said.

The action in the domestic market on December 4 was nothing short of euphoria as key indices Nifty 50 and Nifty Bank hit new all-time highs, clocking their biggest single-day gains since October 2022. After a sharp gap-up open, both the indices held on to their stellar gains as investors celebrated the BJP's clean sweep in three key states.

"Why has the stock market gone up? Because investors are looking for stability. And, PM Modi has got that stability for them. Investors look for stability where they invest. Both domestic and foreign investors will look for stability. Money will flow into the country because the government will spend on infrastructure, and this is where BJP will continue to spend. I don't see any change in BJP's policies," Alagh said.

Execution: Modi's winning formula

Alagh praised Prime Minister Modi's execution skills, highlighting his ability to implement policies efficiently. He said that PM Modi's focus on the welfare of the poor and the middle-class resonates with voters. Alagh expressed the desire for PM Modi to continue executing policies, controlling inflation, and introducing new reforms.

Speaking on whether BJP could be populist, and what key reforms the government should focus on, Alagh said: "Today, everyone is talking about PM Modi because he executes, regardless of the time they take. He is a great executor. Rajasthan and Karnataka always vote somebody out every five years. And, Modi always says the poor and the middle-class in the country have to be looked after well. His infra projects have the labour involved. He is executing them all across. We want him to continue doing what he doing and bring in new policies not introduced before. More labour will get work and inflation will be under control and this is what we want."

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Voter intelligence

According to Alagh, voters base their choices on specific parties. He cited the example of Bengal, where voters supported Mamata Banerjee in state elections but favored BJP in the Lok Sabha polls. Looking ahead to the 2024 general elections, Alagh believed voters will cast their ballots based on their expectations from the central government. He asserted that, currently, PM Modi stands out as the most favored candidate for the post of Prime Minister.

"The voter is very intelligent. In state elections and in general elections, they vote for the parties that they like. They voted for Mamata Banerjee in Bengal but gave 19 seats for BJP in the Lok Sabha. In the 2024 general elections, voters will vote for what they want from the Centre. Modi is on the top now. Modi will be the only one who will make a good Prime Minister," Alagh said.