Prime Minister Narendra Modi’s party winning key state elections boosts India’s appeal for foreign investors and inflows into local equities. The results ensure policy continuity, lift prospects for the stock market, and increase investor sentiment. The victory also reinforces expectations of a Modi win in the 2024 national elections. The stable political environment and convincing growth policies attract more money into the market. Market participants expect the Sensex to reach new highs and the benchmark Nifty to attain 20500-20800 levels.
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