Where will markets take us now? India is not totally decoupled from the world so I really do not know how much of that euphoria can translate into actual demand. Sentiment has given us a breather for the time being with desperate FIIs pumping in money and enhancing liquidity. Mid caps suddenly seem to be back in flavour and lot of bulk deals in the market seem to accentuate that.

On a different note, here is my take on why the Congress led UPA won:

1. When urban India was facing the heat from global recession rural India was shining thanks to loan waivers, employment guarantee programs, minimum price support etc. Rural voter turnout is higher than urban so they voted across caste lines and massively for the Congress
2. Rahul Gandhi campaigned extensively and reached out to the masses. He got a lot of grassroot support, something which the BJP missed
3. BJP went too right wing for the moderate Indian citizen’s liking. With Varun & Modi campaigning, they realized with these guys in power it would be a talibanised version of India.
4. Pro incumbency wave in emerging nations, this trend has continued in India as well