Photo for representation only. Photo for representation only.

The Narendra Modi-led BJP victory in the Lok Sabha elections will help India's profile in the corporate sector.

Ratings agency Moody's, in a report released on credit outlook on Monday, said the new government's strong mandate, which shows an overwhelming majority of 334 seats in the 543-member Lok Sabha, for the BJP-led National Democratic Alliance (NDA) improved the chances of a stable government, hence allowing it to address India's macroeconomic challenges.

The decisive win, Moody's said, will have an immediate effect of sustaining investor sentiment. "The completion of the election will also allow stalled policies relating to the corporate and infrastructure sectors to resume, a credit positive for the country's corporates," Vikas Halan, vice-president and senior credit officer of Moody's, said in the report.

Moody's observations were made in the report titled 'India's Decisive Election Outcome is Credit Positive'. "India raised diesel prices immediately after the voting, the first such move since regular price increases were halted in March; we expect further price hikes in the months ahead," Halan said, adding that this would be 'credit positive' for oil-marketing companies.

"A strong majority government would also increase the likelihood of structural reform in India's ailing power sector. Closer co-ordination between the central and state governments on clearances for mega projects and land use, two proposals outlined in the BJP's manifesto, would address investment delays," Halan said.