D-Street looks set for Modi rally tomorrow
Indian equities are poised to rise on Monday, with exit polls predicting a victory for the BJP-led National Democratic Alliance (NDA) in the general election, easing investor uncertainty over the ruling coalition's performance, analysts said.
Benchmark indices may rise about 2% Monday as foreign investors could reduce bearish bets, giving the market a boost. Shares of public sector and manufacturing companies, beneficiaries of the Narendra Modi-led BJP government's Make in India theme, could lead the likely advance, they said.
«Most exit polls are indicating a win for the NDA, which should trigger short covering on Monday,» said Sriram Velayudhan, senior vice president, IIFL Securities. Uncertainty had set in over the past few weeks and foreign portfolio investor (FPI) short positions in index futures were at record highs, he said.
FPIs' record bearish derivative bets and selling of shares have weighed down the market. In the past week, the Sensex and the Nifty fell close to 2% each. Though the fall in the market gauges in the past month has been less than a percentage point, traders and investors have been unnerved by the volatility with the indices swinging between gains and losses.
«We expect a gap-up opening on the market on Monday and can see a 1-2% up-move, even though volatility may persist,» said Sunny Agrawal, head of research, SBICap Securities.
«The GDP growth numbers being better than expected will also give a positive boost to the market,» said Agrawal. The Centre on Friday said the gross domestic
