Bull run in sensex after most exit polls predict major BJP win
Almost all exit polls have been projected to make a huge victory for BJP-NDA and formation of Modi government once again. After this poll there was a complete possibility that the stock market would react positively. On Monday, at the beginning of the trading, the Sensex jumped 962 points and the Nifty has seen a jump of more than 200 points.
At the beginning of the business, a the BSE jumped over 1000 points intraday. However, after that there was some decline on the back of profit recovery. Experts believe that the stock market will be happy to see the possibility of a stable government at the Center. The prospect of getting the full majority of BJP will increase the market’s enthusiasm.
Head of retail research Deepak Jasani said, “Most exit polls have estimated NDA’s victory with good margins in the Lok Sabha elections. In the last few days, the market was showing signs of some extent. If the BJP gets a majority on its own, then the market will be excited. ‘
However, investors of stock market also know that exit polls are often wrong. Jasani says that the market wants to see a strong government, but people want to wait till May 23 for the actual results.
Jasani said, “Given that the results of exit poll for the last two elections have not been in line with the actual results, the market is excited but not very excited.”
Other factors like the fourth quarter results of major companies this week, international market signals and dollar’s move against the dollar and crude oil prices will also impact the market. Investors will be overseen by foreign portfolio investors-FPI and domestic institutional investors-DII.
In the beginning of the week, Bharat Petroleum Corporation, Hindustan Petroleum Corp and Tata Motors are going to release their results for the fourth quarter of the financial year on Monday. After this, some companies may also get results on Tuesday. Cipla and IndusInd Bank’s results for the fourth quarter will be out on Wednesday. The results of Grasim Industries will be declared on Friday.
On the other hand, progress toward the US-China trade tension will also be visible in the market. GDP figures in Japan can be issued on Monday and the minutes of the meeting of the US Central Bank are going to be released on Wednesday.
The Sensex of the Bombay Stock Exchange rose 467.78 points or 1.24 percent last week. On Friday, the Sensex gained 537.29 points or 1.44 percent to 37,930 points. The National Stock Exchange’s Nifty also closed 150.05 points or 1.33 percent higher at 11,407 points.
