Exit polls predict BJP win: How the markets may react on Monday
exit polls predicted a thumping majority for the ruling Bharatiya Janata Party (BJP) in Lok Sabha elections.
The polls come as a shot in the arm given how the markets have been marred by election jitters throughout May.
Most pollsters projected a comfortable victory for the BJP-led NDA alliance, paving the way for Prime Minister Narendra Modi to come back to power for the third time. If we consider the average of the polls, the Modi government is likely to cross the 350-mark.
«Technically and fundamentally the market is poised for a rally. Largecaps in financials, capital goods, automobiles, and telecom are likely to lead the swing,» said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The bulls might take further steam from better-than-expected growth (8.2%) in GDP numbers, released late Friday last week.
Analysts also expect public sector companies along with engineering, power, and banks also lead the rally on Monday. «Also, there could also be short covering by foreign investors, which would further add to the party on the street,» said Gaurav Dua of Sharekhan by BNP Paribas.
However, there could be heightened volatility as we get closer to the big poll results on June 4. As the overall sentiment of the market is bullish, investors are advised to use any correctional fall that can be accompanied by fresh buying.
If the actual numbers turn out to be somewhere close to the predictions, markets would embrace the euphoria as it would mean a stable government with continuity in the
