CLSA’s report follows a controversial Goldman Sachs report last week that had similarly linked the market rally to hopes of a Modi-led government coming to power in 2014.
Reacting to the report, Rajiv Shukla, minister of state for parliamentary affairs and planning, told Hindustan Times: “I completely disagree with what CLSA says. Everyone should stay confined to one’s own area of expertise. One should not unnecessarily get into political affairs and issues.”
Commerce minister Anand Sharma and Congress general secretary had also similarly dismissed the Goldman Sachs report.
“The markets are gaining partly in anticipation of a Narendra Modi win in the 2014 elections,” said VK Vijayakumar, investment strategist at Geojit BNP Paribas Financial Services.
The BSE Sensex touched an all-time high of 21,321.53 on November 3, despite the weak economy. It has since come off those peaks and ended Monday on 20,490.96.