Markets likely to remain euphoric: Analysts

New Delhi: Equity markets are likely to remain euphoric in the coming days following the BJP's emphatic victory in the general elections, even as participants may start to shift their focus to policy reforms, earnings growth and global cues, analysts said.

The Sensex and Nifty rallied to record closing highs on Friday after the ruling BJP secured a comfortable majority in the lower house, raising expectations of more business-friendly measures by the Narendra Modi-led government.

"Stock market likes certainty. The strength of this mandate for the BJP assures stability in government, stability in governance and continuation of the development agenda for the next five years.

In all likelihood, the market will remain euphoric in the coming days.

Post that, focus will shift back to corporate earnings, liquidity situation and global events," said Amar Ambani, president and head of research, Yes Securities.

The Bharatiya Janata Party (BJP) has won over 300 seats on its own out of 542 seats in the Lok Sabha elections.

"Markets had a very vigorous week and therefore sufficient rest will be needed before it can find new pace.

Volatility will eventually come down and rationality will prevail.

Benchmark indices might not give any direction this week but could face mild downward pressure and Indian markets will finally align with global mood.