The Indian equity markets went up in euphoria on account of the return of Narendra Modi as prime minister. For the first time in its history, Sensex and Nifty crossed new milestones of 40,000 mark and 12,000 marks respectively. However the euphoria is likely to be short lived, as macroeconomic factors will catch up eventually. The new government faces a lot of challenges in reviving the economy ranging from consumption slow down, liquidity crisis, unemployment, stagnant private sector investment etc. On top of this, the global factors are not supporting either. There is an ongoing China-USA trade war that is impacting the entire world.