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The Indian equity markets, which have been in the throes of volatility in the run up to the outcome of the General Elections, will likely cheer the predictions of a handsome victory for the Narendra Modi-led National Democratic Alliance. According to exit polls released on Saturday, the NDA is seen securing 361 seats , improving on its 352-seat tally in 2019. "A victory for the NDA would mean stability and visibility for the next five years," said Rajesh Bhatia, chief investment officer, ITI Mutual Fund.

"Governments are important for capital markets. This government has done a great job on macro economic stability as well as touching the right chord as far as economic momentum is concerned. So the market will like that predictability for the next five years and that’s what we’re really looking forward to.



" Maneesh Dangi, founder of Macro Mosaic Investing & Research, concurs. Foreign investors were betting aggressively on an anti-incumbency wave in India, but the exit polls suggest this has not come to pass, he said in a chat with NDTV Profit. "For an investor it is easier.

It is very likely that two-three days of knee jerk reactions pave the way for relatively lower risk premiums, because much of it would be driven by the technicalities. For the traders, if you’re short, unfortunately all sorts of stop-losses will get hit," he said. Equity markets have behaved in a similar fashion in past elections, where there are sharp movements around the result day, but they eventu.

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