Mumbai: Yet another foreign brokerage has said that it expects Narendra Modi-led BJP to come to power after the Lok Sabha elections.
"Nomura expects a BJP-led coalition to form the next government at the Centre after the 2014 elections," Alastair Newton, political analyst at the Japanese brokerage, said in a note dated November 26.
However, Newton tempered his political forecast saying "a stable government, regardless of whether it is led by the BJP or the Congress, should support a gradual business cycle recovery".
"Once political stability has been established, we believe past investment projects cleared by the Cabinet Committee of Investment could be implemented," Nomura India chief economist Sonal Verma said.
Verma said political stability and policy credibility are paramount to corporates making long-term investment decisions. This will help the economy witness a gradual recovery after the third quarter of 2014, she said.
Verma also said a Third Front government or a fractured mandate in the hustings will further slow the reform momentum and lower potential growth.
