Markets are soaring in the hope of a BJP-led government coming to power. The S&P BSE SENSEX has crossed 23500 mark and the NIFTY has crossed 7000 mark. A number of brokerage firms have advised investors to avoid taking fresh positions purely based on the exit polls giving a clear majority to the NDA-led BJP Government. Unfortunately, investors are not paying heed to this advice. All will not be hunky dory on the new government coming to power. In reality, the new government will have to deal with a number of challenges for a few months. To deal with these challenges, they will need to take some unpleasant steps. The borrowing calendar announced will have to be revised upwards. In the current year, new government will need to account for the Rs 1.1 lakh crore subsidies that were postponed by Chidambaram in order to make fiscal deficit numbers look healthy. Besides, the El- Nino effect is likely to impact monsoons in the current year, which will adversely impact food grain production
