The recent state assembly election victories have further consolidated the position of BJP-led NDA which will provide much-needed stability and resolve to push for economic reforms, according to a report on Thursday.

The results of recent state/Bye-elections in Maharashtra, Haryana, Uttar Pradesh and Bihar have bolstered the position of ruling NDA, said the report by PL Capital - Prabhudas Lilladher.

This will help policy continuity towards major reforms across the spectrum in the country.

With the BJP-led MahaYuti’s landslide victory in the Maharashtra, the state’s ambition to reach the target of a $1 trillion economy goal got a major fillip, as envisioned by Prime Minister Narendra Modi.

In August this year, Maharashtra became the country’s first state to surpass the half a trillion-dollar economy mark, underscoring the state’s rapid economic progress and its ambitious journey towards a trillion-dollar economy.

India's food inflation is likely to ease while the growth outlook for the economy is "cautiously optimistic" for the coming months as the agricultural sector is likely to benefit from favourable monsoon conditions, increased minimum support prices and adequate supply of inputs, according to the Finance Ministry's monthly economic review.

According to the report, the Indian markets are on course but headwinds are yet to peak out.

The demand conditions remain mixed with steady uptick in rural demand given low base and normal monsoons. All hopes now rest on the demand surge in festival and wedding season, it added.

According to the report, Donald Trump 2.0 is likely to see some reduction in global wars, lesser geo-political uncertainty and stable crude prices, which would augur well for the Indian economy.

The expected revival in government capex as Q2 capex has turned positive and H1 capex is only 37 per cent of FY25 BE, it added.

Banks, capital goods, hospitals, logistics and pharma reported more than 19 per cent EBIDTA growth YoY. Durables, IT services and chemicals reported single digit EBIDTA growth in Q2 FY25.