The Bharatiya Janata Party (BJP) Manifesto of 2024 focuses on Prime Minister Modi’s promise to make India a developed nation by 2047. The government aims to sustain economic growth by prioritising infrastructure and renewable energy sources.

The manifesto also highlights a renewed emphasis on the manufacturing sector and agricultural reforms to reduce dependency on imports and improve exports.

The plan includes investments in railway, road, and airport infrastructure and initiatives to promote renewable energy, especially solar and wind power. The migration from being a hydrocarbon and a thermal-based country to solar, wind, and other green fuel sources.

Additionally, there is a commitment to support small and medium-sized enterprises and improve lending processes. The overall goal is to achieve self-sufficiency in energy and reduce India’s dependency on external factors such as imports.

The US Federal Reserve’s decision to hold off on rate cuts until the end of the year is expected to have a sustained impact on foreign investments in India and other emerging markets.

Listed companies on the BSE saw their market capitalisation decrease by Rs 7, 34,513.48 crore to Rs 3, 93, 34,896.14 crore (USD 4.71 trillion). This was due to continuous outflows of foreign funds and significant selling pressure in HDFC Bank, Larsen & Toubro, and Reliance Industries, which negatively affected investor confidence.

A BJP win is expected to bring continuity and stability to policies and programs, which may lead to increased economic reforms. The continuation of the same Government in India in 2024, will gain the investors’ confidence in India, due to stable rules, policies, and governance.

India is expected to continue as an important investment destination driven by its economic growth as the BJP government wins.

What will be the effect on the Indian share market in the long term as the BJP wins the Lok Sabha elections in 2024?

In the short term, on June 4, 2024, the day of the election result date, the market saw a drastic decline as the winning party, NDA, received tough competition from the opposition party, India Alliance.

On June 4, Tuesday, the stock market experienced significant declines. The Nifty 50 opened at 23,179.50 and dropped 8.5% to a low of 21,281.45, while the Sensex started at 76,285.78 and fell 8.2% to 70,234.43.

At the end of the trading day, the Sensex concluded at 72,079.05, marking a 5.74% decrease of 4,390 points, and the Nifty 50 finished at 21,884.50, down 5.93% or 1,379 points.

On the NDA government’s win, the market is expected to recover back in the next few days.

The Indian stock markets bounced back from election result losses as both the NSE Nifty 50 index and the BSE Sensex experienced a significant surge of over 3% by the closing session on June 5, Wednesday.

The Nifty 50 index settled at 22,620.35, up by 3.36%, while the BSE Sensex closed at 74,382.24, marking a robust increase of 3.20%. Both indices surpassed their closing levels from the previous Friday.

Since then, the Nifty has made a remarkable recovery, gaining 1,346 points, and the Bank Nifty has shown a strong rebound, gaining 3,250 points from the previous lows.

The market’s recovery on June 5, Wednesday indicates the return of investor optimism and confidence, with broad-based gains across various sectors.

The volatility around the outcome is expected to decrease over the next few days, and the market focus will shift back to strong macro and fundamental factors in the long term.

The new government will soon present its first Union budget for FY25, with an emphasis on areas such as capital expenditure, manufacturing, rural development, consumption, and credit lending.

The rural and consumption sectors are expected to gain momentum with the beginning and progress of the Monsoon season, which is forecasted to be above normal this year.

Let’s discuss the probable impact on major sectors of the Indian Stock Market on the BJP win. The sectors most likely to be impacted are based on the manifesto and the interim budget provided by the BJP government.

The 2024 Lok Sabha elections BJP manifesto outlines plans to expand infrastructure under the Modi government, including more bullet train projects, access-controlled speed highways, and developing India as an international aviation hub.

Infrastructure Sector:

The return of the Modi government indicates that railways, roads, and aviation are expected to remain top priorities. Under the Modi government, national highways have expanded by 60%, increasing from 91,287 km in 2014 to 146,145 km by the end of 2023.

The Indian Railways carried around 5.85 billion passengers in FY23. The aviation sector has also seen growth, with the modernisation of airports and the inclusion of smaller cities on the aviation map.

Experts hope for further infrastructure development, including increased private player participation in the highways sector.

Highway project awards slowed down in Q1FY25 due to the model code of conduct, but this is expected to pick up in July. In the aviation sector, the ministry is working on a master plan to transform airports into regional international hubs.

Manufacturing Sector:

The BJP focuses on strengthening the manufacturing sector by establishing global hubs for automotive/EVs, electronics/ semiconductors, and railways. The party also aims to localise defence manufacturing.  The manifesto highlights two areas of particular interest:

Textiles, which have the potential for substantial employment generation and

Active pharmaceutical ingredient (API) manufacturing, where India has inherent advantages.

There is also an effort to strengthen India’s position as an aviation hub. The manufacturing sector is expected to continue performing well, driven by policy initiatives and the global trend of supply-chain diversification. As a result, the brokerage prefers asset-heavy manufacturing companies over asset-light services players.

Renewables Sector:

Under the leadership of Prime Minister Modi, our government is not just advocating for a lifestyle that cares for the environment, but actively implementing a comprehensive approach to managing all aspects of the environment.

Their commitment to leading the world in sustainable living is not a mere aspiration but a firm resolve. They will harness both traditional wisdom and modern practices to contribute significantly to a healthier planet.

As a testament to environmental focus, they have already produced 44% of the electricity from non-fossil fuel sources. This is a significant milestone.

The BJP government will continue on this path, increasing the use of non-fossil fuel sources in line with Panchamrit (Modi’s net-zero pledge at Glasgow). Their goal is to reach a state of net-zero emissions by 2070.

Frequently Asked Questions (FAQs)

1. Who won the Lok Sabha 2024 Elections in India?

The National Defence Academy (NDA) Government won the Lok Sabha Elections in India on June 4, 2024. Bhartiya Janta Party (BJP) being a member of the NDA Government won the Loksabha 2024 elections with 240 seats in India.

2. What is the NDA Government?

The National Democratic Alliance (NDA) is a significant Indian parliamentary group. It was formed in 1998 by former Prime Minister Atal Bihari Vajpayee and former Deputy Prime Minister L. K. Advani. In 1998 and 1999, Atal Bihari Vajpayee won both elections as the prime ministerial candidate. However, the NDA lost the elections in 2004 and 2009 when Atal Bihari Vajpayee and L. K. Advani led the alliance respectively. In 2014 and 2019, the NDA, with Narendra Modi as its prime ministerial candidate, won with a majority and formed the government. Narendra Modi is also the prime ministerial candidate for the 2024 Indian general election and has won the election with a majority.

3. Who are the members of the NDA Government in India in 2024?

National Party	Bharatiya Janata Party	BJP	National party
National Party	National People’s Party	NPP	National party
State party	All India N.R. Congress	AINRC	Puducherry
State party	Apna Dal (Soneylal)	ADS	Uttar Pradesh
State party	Asom Gana Parishad	AGP	Assam
State party	Hill State People’s Democratic Party	HSPDP	Meghalaya
State party	Indigenous People’s Front of Tripura	IPFT	Tripura
State party	Janata Dal (Secular)	JDS	Arunachal Pradesh, Karnataka and Kerala
State party	Janata Dal (United)	JDU	Bihar
State party	Lok Janshakti Party (Ram Vilas)	LJPRV	Bihar and Nagaland
State party	Maharashtrawadi Gomantak Party	MGP	Goa
State party	Naga People’s Front	NPF	Manipur and Nagaland
State party	Nationalist Congress Party	NCP	Maharashtra and Nagaland
State party	Nationalist Democratic Progressive Party	NDPP	Nagaland
State party	Rashtriya Lok Janshakti Party	RLJP	Bihar
State party	Shiv Sena	SHS	Maharashtra
State party	Sikkim Krantikari Morcha	SKM	Sikkim
State party	Telugu Desam Party	TDP	Andhra Pradesh and Telangana
State party	Tipra Motha Party	TMP	Tripura
State party	United Democratic Party	UDP	Meghalaya
State party	United People’s Party Liberal	UPPL	Assam
Unrecognised Party	Amma Makkal Munnettra Kazhagam	AMMK	Tamil Nadu
Unrecognised Party	Tamizhaga Makkal Munnetra Kazhagam	TMMK	Tamil Nadu
Unrecognised Party	Bharath Dharma Jana Sena	BDJS	Kerala
Unrecognised Party	Gorkha National Liberation Front	GNLF	West Bengal
Unrecognised Party	Haryana Lokhit Party	HLP	Haryana
Unrecognised Party	Hindustani Awam Morcha	HAM	Bihar
Unrecognised Party	Jan Surajya Shakti	JSS	Maharashtra
Unrecognised Party	Jana Sena Party	JSP	Andhra Pradesh
Unrecognised Party	Kerala Kamaraj Congress	KKC	Kerala
Unrecognised Party	NISHAD Party	NP	Uttar Pradesh
Unrecognised Party	Prahar Janshakti Party	PJP	Maharashtra
Unrecognised Party	Pattali Makkal Katchi	PMK	Tamil Nadu
Unrecognised Party	Puthiya Needhi Katchi	PNK	Tamil Nadu
Unrecognised Party	Rashtriya Lok Dal	RLD	Uttar Pradesh and Rajasthan
Unrecognised Party	Rashtriya Lok Morcha	RLM	Bihar
Unrecognised Party	Rashtriya Samaj Paksha	RSP	Maharashtra
Unrecognised Party	Republican Party of India (Athawale)	RPIA	Maharashtra
Unrecognised Party	Suheldev Bharatiya Samaj Party	SBSP	Uttar Pradesh
Unrecognised Party	Tamil Maanila Congress (Moopanar)	TMCM	Tamil Nadu

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