Road construction usually sees a drop in an election year as the execution of projects is delayed during the model code of conduct and project awarding is delayed in the financial year before the Lok Sabha elections.
The lower level of borrowing by the central government is a positive for interest rate-sensitive segments such as real estate, autos, PSU banks, NBFCs and small private banks.
The Indian government has been in a running battle with S&P Global Ratings, Moody s Investors Services, and Fitch Ratings as it thinks the sovereign rating assigned to the country is not a fair reflection of its economic strength.