MUMBAI: Stock market investors do not yet regard the Arvind Kejriwal-led Aam Aadmi Party (AAP) as a serious threat to BJP's chances of assuming office for the third time despite the spectacular surge in fortunes for the debutant party following its stunning victory in the Delhi assembly elections.Traders and brokers ET spoke to criticised AAP's economic policies but said that its insistence on clean candidates untainted by corruption would change the way politics is played out in the country. They were worried that AAP's reliance on freebies and subsidies would harm the country's finances while its anti-corruption plank could potentially slow down the pace of decision making. "AAP has started on a wrong note, and if its surge continues, it could be a disaster for the economy and stock markets," said Deven Choksey, MD, KR Choksey Shares and Securities. "Markets are wary of AAP. The party must give a clear road map on how and where it will fight corruption.How is Kejriwal different from other populist governments?" he wondered. Others were willing to give the newbie outfit a chance. "The anti-corruption plank by AAP is positive for stock markets to the extent that it would force other political parties to choose candidates with clean record," said Samir Arora, fund manager, Helios Capital.The day AAP won the trust vote, stock markets fell the most in one and a half months. Some dismissed it as profit booking after the Modi rally but others were not so sure. Shares of Reliance Infrastructure, which supplies power to Delhi, have dropped over 3% since January 1 while the Tata Power scrip has fallen 7.7%.The fall was largely due to an audit of power discoms ordered by Arvind Kejriwal, the Delhi chief minister, and a 50% cut in electricity tariffs for households consuming up to 400 units of power per month in Delhi. Brokers believe that subsidies will worsen finances and create a domino effect with politicians in other states demanding similar doles.Audit of power discoms in Delhi is likely to increase conflict between government and the private sector and lead to politicians resorting to similar measures as a way of punishing private sector companies."AAP's policy moves in Delhi has perplexed and puzzled investors," said Saurabh Mukherjea, CEO (institutional equities), Ambit Capital, which caters to large foreign institutional investors.AAP MAY NOT IMPACT BJP Helios Capital, the Singaporebased FII, said that it was not sure about the impact of AAP on the BJP's electoral fortunes. But it credits Kejriwal with raising the bar for selection of political candidates, something that augurs well for financial markets.Rashesh Shah, Chairman, Edelweiss Financial Services, also lauded AAP's anti-corruption initiative. "AAP has certain set of socialist policies that markets may not like. But the party has given a positive feel to the markets that it may curtail corruption. It may emerge as a force to reckon with in the next 5-10 years," he said Billionaire investor Rakesh Jhunjhunwala, Partner, Rare Enterprise, often called India's Warren Buffett, said that Narendra Modi will be good for the economy.Speaking to ET NOW, Jhunjhunwala said that if Modi becomes Prime Minister, it will generate "a lot of confidence".Jhunjhunwala doesn't see regional parties performing "very well" in the 2014 elections. "They have lost vote share in Madhya Pradesh, Rajasthan and Delhi. I feel it will be an election where the regional parties will not perform very well. I personally do not see the non-NDA, non-UPA parties getting more 150 seats," he said.Another market expert Ramesh Damani said that despite the prospect of AAP eating into BJP votes in urban areas, the saffron party would still emerge as the singlelargest party in the 2014 general elections."Markets are certain that BJP would still emerge as the singlelargest party," said Damani."AAP's intention seems noble, but it's too early to judge the party. Also, elections are five months away and markets would watch what AAP does in Delhi."AAP has already sounded the Lok Sabha poll bugle, announcing that it will put up candidates for the May 2014 polls. Political experts believe that AAP will pose a threat to the BJP in many urban seats and could possibly eat into some of its votes. Shankar Sharma, chief global strategist, First Global, is bearish on the stock markets ahead of the elections."Any party to the 'left' or 'right' of 'centre' (Congress) will do poorly in up-coming elections. Markets are entirely positioned on the long side as of now," he said.Traders and brokers worry AAP’s reliance on freebies would harm country’s financesThey believe subsidies would create a domino effect with politicians in other states demanding dolesThey feel the party’s anti-corruption plank could slow down pace of decision making But some say insistence on clean candidates would change politics