Goldman Sachs predicts that the major fear of Indian markets that the Third front will form a government will be eased if the projections of various exit polls come true. While the fear of Left playing some role in the government exists, the India Inc hopes for a government without any Left representation. It also reported that, reduction in the seats of the regional parties is a positive sign for decision making.
Goldman Sachs also stood for Congress-led UPA government for stability. It said, "Given the experience of the past five years, the UPA is skilled at building coalition, which could provide some comfort that a stable government will take over post-election.''
In its report Citigroup said, "A combination with the Left could put reforms on the back-burner, while a non-Congress or non-BJP coalition would have more implication for stability than policy," .
The industry captains are worried about the new government since a non-Congress or non-BJP formation has not been able to give a stable government in the past. India's economic had boomed immediately after five elections out of seven since 1984, when a stable combination formed the government.