Market may go down 15-20% if BJP secures less than 250 seats, party allies in three states doing poorly: Ruchir Sharma

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Is the Indian stock market fairly valued or overvalued? Experts weigh inSharma emphasised that if the BJP fails to secure 250 seats, the market may experience a sudden downfall of 10-20%. He further said India boasts the world's "most costly" stock market.“It is also why foreign investors are being skittish about coming in.

The on-ground environment still needs to be greatly improved for foreign direct investment. We are attracting FDI as a share of the economy at over 1% of GDP," Sharma said.

willSharma further emphasised that India has experienced unparalleled wealth generation over the last five years, driven solely by domestic capital, with minimal foreign involvement. He pointed out that despite boasting the highest count of billionaires globally, India also grapples with unprecedented levels of income inequality.Also read: Multibagger! KPI Green Energy zooms over 24400% in 4 years; should you buy the stock?Contrastingly, Sharma acknowledged the BJP-led NDA government for effectively managing inflation, stating that had inflation surged to 8-9%, the anti-incumbency sentiment would have been far more pronounced.Sharma, who has been closely tracking Indian elections for more than twenty years, said that the allies of the BJP in Bihar, Karnataka, and Maharashtra are faring poorly in the current Lok Sabha elections.He predicts that while the NDA and MVA are likely to divide seats in Maharashtra evenly, the BJP's partners, the NCP and Shiv Sena, under Eknath Shinde's leadership, will feel a significant setback."The general sense (during my travel) I picked up is that the seat split in the state will be 50/50, but the real loss will occur in the two BJP allies," he said when asked about Maharashtra.He said, “Except Andhra