ADVERTISEMENTREMOVE AD

Exit Polls to Bring Back Animal Spirits in Markets, Say Brokerages

Markets are expected to gain in the short-term and are likely to rise further if exit poll predictions come true.

Updated
Business
2 min read
story-hero-img
i
Aa
Aa
Small
Aa
Medium
Aa
Large
Hindi Female

On Monday, as the markets kick off a fresh week of trading, they are expected to rally on back of the exit polls, most of which on Sunday, 19 May, predicted a comfortable majority for the Narendra Modi-led NDA government in the Lok Sabha elections.

Several brokerage firms are of the opinion that the exit poll trends will help the markets gain at least in the short-term, till the actual results come out on 23 May.

"This (exit polls) should boost investor confidence and help equity market performance in the near term in our view," India Equity Strategy said in a release on Monday, adding that the development is likely to help the credit market.

Moreover, if the final mandate indeed mirrors the predictions, the gains would be extended, the brokerages suggested.

"The street would like it even more if the BJP on its own gets a majority in the Lok Sabha," Deepak Jasani, Head of Retail Research for HDFC Securities told the news agencies.

ADVERTISEMENTREMOVE AD

The predictions are expected to pump some life into the markets which have been rather cautious since the turn of this month, owing to electoral uncertainties and trade tensions between US and China.

"Post the exit polls, we can expect Nifty to again test its recent high before 23 May. Fresh breakout into the 12,000 to 12,500 zone would depend on whether BJP gets majority on its own on the 23rd," Rusmik Oza, Head of Fundamental Research, Kotak Securities, told news agency IANS.

“A lot of local money has remained on the sidelines, which can come into the markets post exit polls,” he said.

But Caution Too...

“...Going by the way the exit polls in the last two elections were off the mark from the actual numbers, the markets would get excited but not super excited," said Deepak Jasani.

India Equity Strategy, in its release, commented upon the 'patchy' nature of exit polls, mentioning the 'huge 2004 miss'.

In 2004, most exit polls predicted a majority for the then Atal Bihari Vajpayee-led NDA government but the results led to the formation of UPA government under Manmohan Singh.

Meanwhile, markets regulator Sebi and stock exchanges have beefed up their surveillance mechanism to check any manipulative activities in the market this week in view of the high-octane election related events lined up, reported news agency PTI.

(With inputs from PTI and IANS)

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

0

Read Latest News and Breaking News at The Quint, browse for more from news and business

Topics:  Markets   Sensex   Nifty 

Published: 
Speaking truth to power requires allies like you.
Become a Member
3 months
12 months
12 months
Check Member Benefits
Read More
×
×