BJP’s Resurgence in Delhi Sparks Market Optimism, ‘Brand Modi’ Shines Again: MOFSL

 

The Bharatiya Janata Party (BJP) made a strong comeback in Delhi after 27 years, securing 48 out of 70 seats in a decisive victory. According to Motilal Oswal Financial Services (MOFSL), this win is set to boost investor confidence by reinforcing political stability at the Centre and driving policy momentum.

 

MOFSL attributes the BJP’s success to its “double-engine” governance promise, Prime Minister Narendra Modi’s influential campaign, and a growing sentiment of anti-incumbency against the Aam Aadmi Party (AAP). While pre-election trends hinted at a tough fight, the final outcome mirrored exit poll predictions.

 

Market Sentiment Turns Positive

 

Delhi, despite contributing only seven seats to the Lok Sabha, holds significant political weight as the nation’s capital. The victory is expected to strengthen the ruling coalition’s position, easing concerns about governance stability.

 

"Brand Modi is regaining its shine with this victory, signaling renewed voter trust," MOFSL stated. The brokerage believes the stock market will react favorably, especially following the Union Budget and recent monetary policy relief from the RBI.

 

Stock Market Strategy Post-Delhi Elections

 

MOFSL suggests investors focus on large-cap stocks, as broader market valuations remain high. With BJP’s recent wins in Haryana, Maharashtra, and now Delhi, political stability is reinforcing market confidence.

 

With BJP’s vote share rising to 46% (from 38% in 2020) and AAP’s slipping from 54% to 44%, this shift signals changing voter sentiment. Meanwhile, Congress remained winless, despite a slight increase in its vote share.