Markets Primed For Bullish Start, Analysts Upbeat After Exit Poll Results
Analysts predict a favourable start to the week, with the possibility of the Nifty reaching new highs
Exit poll results have pointed to a strong performance for the incumbent government and have set off a wave of optimism ahead of Monday trading in financial markets with analysts forecasting a positive opening in the beginning of this week and potential new highs for the Nifty.
“Nifty may not have fully priced in the strength of the exit poll numbers,” said Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers. “We could see some reflection of that on Monday’s opening trade. Overall, it’s positive for the markets in the short as well as long term.”
Prashanth Tapse, Senior VP of Research at Mehta Equities, echoed Solanki’s sentiment, stressing the importance of looking beyond the immediate market reaction. “Monday morning markets would celebrate the exit poll numbers and open with a gap-up strength,” he said.
“But we should focus on the next 5 years plan, which is more important than the next 2-3 days. Election results will pass on with flying colors and focus will now shift towards Capex, Govt spending, valuations and earnings growth,” Tapse added.
"Technically markets would trade highly volatile with high VIX index, holding markets above 22400 levels would keep us in a positive zone with possible upside towards 22800-23000 levels in coming days. Close above 23111 would be highly watched." -Prashanth Tapse, Senior VP of Research at Mehta Equities
The business community is pointedly onboard with the market optimism, expecting Prime Minister Narendra Modi’s third term to bring about significant economic growth.
“Traders across the country expect that much will be done in pursuance of the vision of PM Modi for making India as the third largest economy of the world,” said Praveen Khandelwal, Secretary-General of the Confederation of All India Traders (CAIT) and BJP Candidate from Chandni Chowk.
“Several new initiatives, policy support, and significant steps will be taken by the Government to ensure substantial growth in domestic trade and economy,” he added.
Analysts spotlighted the anticipation of continued political stability and proactive policy measures as key drivers of market sentiment.
“The ongoing positive atmosphere and much certain political stability shall be the key to robust development,” said Anand Rathi’s Solanki.
“The momentum in infrastructure development and capital expenditure is anticipated to persist and will ensure financial liquidity in the markets which will further enhance the purchasing power of the consumers,” added CAIT’s Khandelwal.
