Mumbai:The stock markets are now showing signs that the election euphoria is over and experts say that the investors will start to bet on the government's steps to revive the slowing economy.
Among the most important steps required, said Kamlesh Rao, MD and CEO, Kotak Securities, would be to address the concerns of a slowdown in consumption.
Consumption in India has slowed due to several factors, chiefly owing to low rural demand. Several experts have attributed this to the effect of disruptive measures like demonetization.
Investors will count on the budget, due in July, in boosting Foreign Direct Investment (FDI) and consumption.
"Once the election euphoria subsides, the market would look forward to global events like the US-China trade war, resolution of issues facing the economy at large and liquidity and credit growth in particular," a Kotak Securities statement said.