INSUBCONTINENT EXCLUSIVE:
NEW DELHI: A saffron surge down south as seen in early trends in Karnataka vote count transformed sentiment on Dalal Street from sluggish
to super-bullish, as investors lifted the benchmark Sensex some 400-points past 35,923, a level last hit in January.
At 11 hours on Tuesday,
224-seat Karnataka Assembly
The state voted on May 12 to elect assembly members from 222 seats.
Dalal Street veterans and market watchers said if the final outcome is
on the lines of the early trends or even better, it will change the outlook for domestic equities.
The verdict appeared to have altered
India outlook of some of the global investors
Modi has had a pretty strong record for his first term, said Geoff Lewis, Senior Strategist (Asia), Capital Markets Strategy Team, Manulife
analysts on Dalal Street said the poll outcome would trigger a fresh bout of buying in the short term
While nine key exit polls had projected the BJP to gain 100 (average) of 222 seats in the Congress-dominated state, early outcome appeared
to have brightened the prospects of the saffron party coming to power in the state without the support of JD(S)
This has lifted investor sentiment
At 11 hours (IST) on Tuesday, three hours into vote count, the BJP was leading in 114 seats, the Congress in 65 seats and the JD (S) in 41
suggest a massive loss for the Congress and corresponding gains for the BJP and JD-S
This is a positive surprise for the market
These results can be presumed to be harbinger of a good outcome for the party in the 2019 elections, which is why the market is rejoicing
Populist measures expected earlier from the government may not actually happen, which would be considered good by both international and
Sandeep Tandon, Founder at Quant Group said should the verdict go in favour of the BJP, as indicated by early trends, it can act as a fresh
At Tuesday's high of 35,993, the index was hardly two per cent away from breaching its high of 36,443.98 hit on January 29, 2018.
The BJP
does not have a strong foothold in South India
Its Karnataka win would surely raise its prospects in 2019 election
Market has liked this government
It is reflected in over 80 per cent surge that we have seen in BSE market capitalisation since this government came to power, says G
said.If it gets Karnataka in its kitty, the BJP will be ruling 22 of 29 states, substantially boosting its clout in the Upper House of
We remain equally constructive on the India and Asia stories
We believe the market is heading towards 14,400 on the Nifty50
We have maintained it for quite some time
Maybe in 2019-20, we will get to those levels
Sharma, Head of Private Client Group and Capital Market Strategy at HDFC Securities, said even if the final outcome is not good as the early
The market will now start looking at the international commodity prices and the movement of Dow Jones, he said
Other market watcher say the outcome will now boost BJP's confidence, given the reverses the party had suffered in the rural belt of
In the December Gujarat election, BJP managed to retain its mandate, but suffered heavy losses in rural constituencies
