New Delhi, Feb 10: The decisive mandate in favour of the Bharatiya Janata Party (BJP) in Delhi assembly elections would be sentimentally positive for the markets and could act as a trigger to attract foreign institutional investor (FII) flows, a report showed on Monday.

Although the exit polls had accurately predicted the election results in favour of the BJP, the actual seat wins were significantly higher at 48 out of the 70 seat assembly, according to the report by JM Financial Institutional Securities.

The incumbent AAP was restricted to 22 seats while Congress gained none.

The BJP’s vote share improved to 45.6 per cent while it slipped in the case of AAP.

“The decisive mandate in Delhi along with comfortable wins in Haryana and Maharashtra, allays fear which had set-in post the lower than expected mandate for BJP in the General Elections 2024 and, hence, would be sentimentally positive for the markets,” the report noted.

The ruling party AAP (Aam Aadmi Party) was restricted to just 22 seats compared to 62 seats in the previous assembly election in 2020.

The BJP has been consistently gaining vote share in last three assembly elections from 32.3 per cent in 2015 to 38.5 per cent in 2020 to 45.6 per cent in 2025.

While AAP’s share of votes continued to slide from 54.3 per cent in 2015 to 53.6 per cent in 2020 to 43.6 per cent in 2025.

“Decisive mandate to support market sentiments: BJP’s victory in the recent state elections in Haryana and Maharashtra had allayed fears which had set in post the lower than expected mandate in General Elections 2024,” the report maintained.

The foreign investors’ fraternity is all set to take a plunge investing in the Indian stock market to get sound, effective net returns from a long-term perspective.

With the sound and pathbreaking reforms for making the financial services sector more robust, inclusive and enhance foreign participation, the government has clearly laid the roadmap for ‘Viksit Bharat’ vision on track.

--IANS

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