Expectations high on investments, stable economic policies

New Delhi: With poll uncertainty behind, investors will now be keen to know the future course of action to boost economy, solution to ease liquidity situation and measures to address financial sector dislocation, analysts said on Thursday.

Focus will now be on steps taken by the government to encourage investment and stable economic policies after the BJP's strong showing in the Lok Sabha elections, they added.

Riding on a massive Modi-wave sweeping through most parts of India, the BJP is set to return to power Thursday.

"The economic and strategic reforms undertaken in the last five years will get a fresh boost with the government led by Narendra Modi coming back to power.

Continuation of a stable regime under his leadership is expected to further strengthen the domestic economy" said Dharmesh Kant, Head of Retail Research at IndiaNivesh Securities Ltd.

We expect the markets to continue to be bullish going forward this year, Kant added.

"A massive mandate to the incumbent party as BJP created another historical benchmark. This is much much more than anticipated and what was expected.

"For markets, this means smooth functioning of existing policies, framework, economic activities and so much.

This is a big thumbs up which means that all the work that has been in place for last few years would continue to function.

Be it economical, fiscal or structural," Mustafa Nadeem, CEO, Epic Research said.