It was the second consecutive week when Indian frontline indices Sensex and Nifty made a new all-time high of 77,145 and 23,490 respectively, as inflation cooled off.
The stock market is attracting global funds which are going to accelerate soon.
Moreover, the stock markets have emerged as a favourite investment destination for retail investors.
According to global rating agency Moody's, its "12-month forward BSE Sensex target is 82,000, implying 14 per cent upside".
In its latest report, Moody's said that the key benefit to the market of the NDA's re-election is "policy predictability, which will influence how growth and equity return pan out in the coming five years".
"We believe the government is likely to continue focusing on macro stability (i.e., inflation hawkishness) to inform policy," according to the report.
"With government continuity now in place, we believe the market can look forward to further structural reforms, giving us more confidence in the earnings cycle. Macro stability with rising GDP growth relative to real rates should extend India's outperformance over emerging markets equities," it added.
According to Moody's, India's stock market has been making new highs, and the debate now is over what could take the market materially higher.
"In our view, the government's mandate is likely to result in policy changes that will lengthen the earnings cycle and surprise the market," it emphasised.
With Modi 3.0 in power, more will come over the next five years in the form of positive structural shifts.
Moreover, India has reclaimed the fourth-biggest global equity market tag from Hong Kong. The country's market capitalisation soared 10 per cent to reach $5.2 trillion.
In comparison, Hong Kong's equity market cap is $5.17 trillion, down 5.4 per cent from the high of $5.47 trillion this year.
At present, India is the second-largest emerging market after China.
Global investors now prioritise liquidity and can't afford to ignore the Indian stock market, which is booming with retail investments, according to global analysts.(IANS)
Read More Business News
