According to Prashant Khemka, markets could recover their losses from last week on Monday

Khemka is bullish about the future, estimating that even with unchanged market multiples, profits might treble over the next five years if economic growth continues to be robust.

Khemka is bullish about sustained growth driven by earnings from a long-term standpoint. He projects that "earnings can double over the next five years and markets remain where it is in terms of multiples" if economic growth stays in the high single digits and nominal GDP stays in the low double digits.

The markets might see some rebound on Monday, according to White Oak Capital Markets founder Prashanth Khemka, if exit polls show the BJP holding a solid position and are consistent with market forecasts. "We can expect a recovery of last week's losses and more," Khemka said in an interview with CNBC-TV 18. "A reasonable forecast of a low to mid-single digit percent increase, somewhere between 2-5 percent."

He believes that small-cap and mid-cap companies will do very well, and the market will start the day on a good note and keep rising. Since many foreign portfolio investors (FPIs) have been holding off on making new investments until after the election results, Khemka also said that foreign investors may expand their buying activities in Indian markets in the next years.

Khemka is certain that profits will continue to fuel expansion in the future. Assuming that nominal GDP increases in the low double digits and economic growth remains in the high single digits, he projects that "earnings can double over the next five years, irrespective of whether market multiples remain unchanged."

Maintaining a well-balanced portfolio is Khemka's recommendation with regard to sector-specific performance. In his opinion, the financial sector has the potential to lead the market in the next 12 to 24 months, even with its recent underperformance. In addition, it is anticipated that growing domestic demand and continuous government expenditure would help industries including consumer goods and infrastructure.

Khemka also issued a warning on possible negative effects, emphasizing that policy errors could pose the greatest danger. He issued a warning that an excessive amount of regulation and taxes would stifle market excitement.

Reverting to any kind of excessive regulation, whether in terms of taxes or policy, is something we would like not to see, he said.