Beyond elections, track these 6 factors also to understand Nifty movement this week
stock market, undoubtedly, this week would be the outcome of the Lok Sabha election results on June 4, investors would be eyeing other key triggers too after last week's profit booking.
A typical election week is full of heightened volatility and wild swings. «The Indian market is currently trading at a premium, having largely discounted the growing likelihood of the continuation of the Modi era. Consequently, we cannot rule out the possibility of profit booking in the second half of the trading session following an initial upward movement,» said Arvinder Singh Nanda of Master Capital Services.
Here are key factors for investors to track this week:
1) Election outcome
Exit polls have predicted that Prime Minister Narendra Modi-led NDA alliance is coming to power for the third consecutive time with a comfortable majority of over 350 seats. While this falls short of the ambitious target of 400+, the market may still rally as the Street has already taken that into account.
If the ruling coalition can cross the 350 mark again, it would be taken quite positively by the market, says Gaurav Dua of Sharekhan by BNP Paribas.
2) Announcements by winning party
Once the results are out on June 4, investors would be looking for cues made by the winning political party or members of the alliance as to what would be the immediate priority of the new government. Besides policy-related announcements, the Street also wants to know who would be the new finance minister.
3) RBI policy
RBI's Monetary Policy Committee (MPC) will
