(Reuters) - India's equity markets could fall from current levels in the June-to-August period if Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) wins fewer seats than expected, a chief investment officer at Incred Capital said on Tuesday.

Opinion polls suggest the BJP will easily win a majority despite worries over unemployment, inflation and rural distress in the world's most populous country.

"Post election results, there could definitely be declines and volatility if numbers are lower than expectations," Rishi Kohli, CIO for hedge fund strategies at the financial services firm, told the Reuters Trading India forum.

"There seems to be a lot of complacency on the results, so that is worrying for post-elections."

The benchmark Nifty 50 index has risen 4.7% this year, hitting an all-time high on Tuesday.

If markets rally an additional 5% from current levels until May, there is a one-third probability that India's frontline equity indexes could fall by over 10%, Kohli said.

Almost one billion people are eligible to vote in a seven-phase election that spans from April 19 to June 1, with votes set to be counted on June 4.

Among sectors, real estate, which has gained about 24% so far this year, is one of Kohli's preferred picks.

Due to its "long decadal cycles, we are just two years into this up-cycle, so a long way to go."

Kohli attributed the recent decline in volatility in Indian equities to 'zero-day to expiry' (0DTE) options and the calculation of the volatility index using monthly options instead of weekly options.

On April 23, the Indian volatility index logged its biggest single-day decline in nearly five years. The index measures likely market fluctuations in percentage terms over 30 days. The volatility index currently stands at 12.98.

"Because you have cheap options expiring the same day there is less gap-risk, and there is no need to necessarily buy monthly options in advance of any major event," Kohli said.

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(Reporting by Savio Shetty in Mumbai; Editing by Sonia Cheema)

By Savio Shetty