Election result indicates end of coalition, opposition era: Motilal Oswal

Business Today spoke to Motilal Oswal, CMD, Motilal Oswal Financial Services, on what should be the agenda for the new government -

"Change is indeed sweeping the country. For the first time since 1989 a single party or any alliance (pre-poll) for that matter has gained absolute majority in Parliament. The ruling coalition would have near two-third majority in the lower House to pass critical bills including Constitutional amendments.

Related Articles

• Expect fast decision-making, business-friendly policies: Siraj Chaudhry
• Manufacturing holds the key for new govt: Ajay Shriram

Full Coverage: Lok Sabha Elections 2014

Change is evident in the accuracy of opinion/exit polls, too, despite their failure in the last four occasions. Not only they got the trend right but the agency that gave the maximum seats to NDA came closer to predicting the poll numbers.

Should we just call it the end of coalition as well as opposition era too? Apparently the rule book suggests that in order to be recognised as official 'Opposition' in the House, a party would need to secure at least one-tenth of the total seats in the House. Congress with just 47 seats may lose the status of official opposition too. This is another aspect of change in the current election.

Modi has his job cut out.

First would be settling down with a credible ministry and Cabinet. Second would be to present a Budget that stays on fiscal consolidation path and yet create room for business confidence to revive and growth to be nudged upwards. Third would be to take up the pending reforms including tax reforms (GST, DTC), energy pricing, SEB losses and setting the ground rules for mining, land, labour and environment. He can then move on to take up more medium to long-term development agenda already in the radar including modernisation and expansion of the transport network, industrial regions and manufacturing revival, urbanisation and most critically agriculture.

In my view this is the best time to invest in equities for medium to long term. A portfolio mix of growth and cyclical stocks would yield far bigger returns than debt or for that matter any other asset class."

INDIA INC REACTS TO NARENDRA MODI'S WIN Expect fast decision-making from Modi govt: Siraj Chaudhry Manufacturing holds the key for new govt: Ajay Shriram Modi must now build bridges with the states: Pradeep Bhargava Clear mandate positive for India, says Sidharth Birla Removing excise concession will be a negative step: RC Bhargava Mandate will allow govt to take the right decisions: Ratul Puri Power sector to do well in next 5 years: Ravi Uppal Railways expected top on NDA's reforms agenda: Vinayak Chatterjee

Tweets about "#newgovt"