'Volatility expected to stay high in Indian stock market ahead of elections 2024'

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₹11.11 lakh crore in FY25). Since 2014, the Government of India has accorded significant importance to infrastructural and developmental initiatives. The same is evident in sectors like cement, which have experienced steady growth over the past 5–6 years.

In addition, future attention is directed towards green energy, renewables, and manufacturing. The key beneficiaries are likely to be electronic and electrical products, with a focus on mass production like exports. Beside infrastructure spending, the Production-Linked Incentive (PLI) schemes stand out as a pivotal initiative.

These schemes are geared towards promoting domestic manufacturing, with the government aiming to allocate around Rs. 2 trillion in incentives. Currently, out of the targeted capital expenditure of Rs.

5 trillion, represents approximately 1.7% of the GDP for FY23. The government has garnered investment commitments totalling Rs. 3 trillion from 733 applicants.

The purpose of the PLI Schemes is to attract investments in key sectors and cutting-edge technology, ensure efficiency and bring economies of size and scale to the manufacturing sector, and make Indian companies and manufacturers globally competitive. Over the next five years, these schemes have the potential to substantially amplify production, job creation, and overall economic expansion. It is expected that these schemes will facilitate the creation of 6 million new jobs.

However, in the current short-term scenario, volatility is expected to rise as the upcoming major event of the election draws closer. India VIX index has increased to 15.2x from 13.5x month back. The ongoing robust pre-election rally, is forecasted to continue until the day of the election results, may take a breath.