With the anticipation that the current government would hold onto power until the Lok Sabha election of 2024, the Indian stock market has already built in policy continuity.

Numerous opinion surveys have predicted that the NDA will win between 315 and 329 seats, but none of them have suggested that the INDI Alliance will return, with average seat victories falling between 93 and 156.

According to analysts, investors’ interest has increased recently due to the improvement in macro variables and the government’s targeted, financially responsible approach to infrastructure development.

Although not a reliable indication, the increased volatility in domestic equities and initial market jitters over the low voter turnout are predicted to affect the number of seats that Prime Minister Narendra Modi’s party, the Bhartiya Janata Party (BJP), is expected to win.

The brokerage firm JM Financial, however, stated that it was unable to identify a discernible pattern in the historical relationship between voter turnout and outcomes.