Elections are important for markets, but are unlikely to have as much impact as the budget

New Delhi: The impact of election results on the stock market is very temporary. Market analysts say that the more important thing is that India's fundamentals should remain strong and India's growth path should continue.

Elections are important for the market. But unlike the budget, it has little lasting impact on the market. What matters most for the market is the performance of the government. No matter what happens in the election – whether it is this election or the 2029 Lok Sabha election, India is on the path to great development.

Analysts say though voting and election results are not directly linked, a drop in voting has led to uncertainty which has been reflected in stock markets in the past. After the election results on Tuesday, the next big event for the market will be the RBI's monetary policy review in June followed by the Union Budget. In the short term, all eyes will be on the July Budget for changes in direct and indirect taxes, MSP policy and MNREGA payments.

However, in the long run, the main focus of the government will be on infrastructure development, agricultural laws, skill development and employment generation in the manufacturing sector.