Govt will continue to focus around power & capex themes: Vikash Kumar Jain

economictimes.indiatimes.com:

«Possibly policymaking will have to adjust to those realities, which we were not thinking about going into the election. So, these are the new things that they need to react,» says Vikash Kumar Jain, CLSA Investment Analyst.

Good note you guys have come out with on the focus on Modi 3.0. I mean, that is clearly the one single biggest area of interest of the market right now. And within that, of course, formation of the cabinet and the agenda to be taken up. What are your thoughts could be the priority areas in the coalition?
I think there are a couple of realities that the new government will have to deal with.

First one is, of course, this is a different government. The last two times they had a simple majority, so they could do things based on what they thought is correct. Now, they have to take the realities of coalition politics into account.

Secondly, if we look at performance of the ruling party itself, whether you compare it versus exit polls or whether you compare it versus their 2019 performance, the three of the biggest states in India in terms of number of seats, that is UP, Maharashtra and West Bengal is where their seats have come down. So, this itself could end up being seen as a feedback to the government because there are some element of rural or agri kind of voters over there, so that is something that they might take as feedback possibility that their popularity has gone down with that voter base. And possibly policymaking will have to adjust to those realities, which we were not thinking about going into the election.