Despite the BJP’ loss in three states — West Bengal, Kerala and Tamil Nadu — on the whole, the results would allow the ruling National Democratic Alliance (NDA) to increase its seat share in the Rajya Sabha, the firm said in a report on Monday.
While this would still be below a simple majority of 123 seats in the Upper House of Parliament, it implied no significant change as the ruling alliance had established working relationships with non-allied parties in recent legislatures, giving it the requisite numbers to pass legislative bills, it said.
“Overall, we do not see any major economic implication from the state election results,” Nomura economists Sonal Varma and Aurodeep Nandi said in the report.
The BJP’s loss in the hotly contested West Bengal elections can be viewed as a referendum on the government’s mishandling of the second wave of Covid-19 infections spreading across the country, although state elections are largely affected by many local factors as well, the report said.
The Mamata Banerjee-led All India Trinamool Congress (AITC) won 213 seats in West Bengal’s legislature against 148 needed for a simple majority while the BJP’s tally stood at 77 seats.
In Kerala, the Left Democratic Front alliance managed to retain power under Pinarayi Vijayan with around 97 seats with the BJP unable to open its account in the state.