MUMBAI: The Parliament will hold a confidence vote on Tuesday which will decide the fate of the Congress party-led government.
Following are analysts' views on current market expectations for the most likely outcome and how the markets would react to different results.
SCENARIO 1: GOVERNMENT WINS VOTE RESULT
Government wins confidence vote, stays in power, prospect of early election recedes. This is the scenario markets are mostly expecting even if the ruling coalition wins the confidence vote by a narrow margin.
A narrow win would hamper its ability to push through big economic reforms, but analysts say the government may in any case not try to push through big-ticket changes in its last months in office.
Following are analysts' views on current market expectations for the most likely outcome and how the markets would react to different results.
SCENARIO 1: GOVERNMENT WINS VOTE RESULT
Government wins confidence vote, stays in power, prospect of early election recedes. This is the scenario markets are mostly expecting even if the ruling coalition wins the confidence vote by a narrow margin.
A narrow win would hamper its ability to push through big economic reforms, but analysts say the government may in any case not try to push through big-ticket changes in its last months in office.
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