The industry welcomed Modi's win for a second term, saying this will ensure policy certainty.
"... market will focus on steps taken by the government to encourage investment and give push to consumption, which is hitting a soft patch," Kotak Mahindra Mutual Fund's Managing Director and Chief Executive Nilesh Shah said in a statement.
He added that the voters have shown a "maturity" in voting the same government, which will help do away with the policy uncertainty.
Industry body Amfi's Chief Executive N S Venkatesh said he expects the political stability to drive pro-reform economic agenda.
"We now look forward to the new government creating a conducive investing environment for the financial asset class," he said.
The new government will have to "deftly" handle issues like head winds like growing oil prices and global trade wars which are being faced by the economy, LIC Mutual Fund's Head of Product and Business Development Lav Kumar said.
He added pace of reforms in various sectors will gain pace and the growth rate will also accelerate.
As per the results and trends available, the National Democratic Alliance is set to retain power, with the BJP alone having single party majority.