SENSEX NIFTY
Dec 20, 2012, 06.25 PM IST | Source: CNBC-TV18

Market might like Narendra Modi's victory: Udayan

The Indian market did quite well yesterday to close around 5,930. Udayan Mukherjee, managing editor of CNBC-TV18 says there is a bit of a set back for US markets overnight. He further says the Nifty is approaching fairly significant resistance zones, the 2012 peak.

The Indian market did quite well yesterday to close around 5,930. Udayan Mukherjee, managing editor of CNBC-TV18 says there is a bit of a set back for US markets overnight.

With the results of the Gujarat Elections today and the Parliament winter session coming to an end, he says, it is officially the last day of the big newsflow for 2012. "The market might like Narendra Modi’s victory," he adds 

He further says the Nifty is approaching fairly significant resistance zones, the 2012 peak. "At this point, global markets should not let us down. We should be able to get a little bit of support from here to get to that 6,000 level," he asserts.

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Below is the edited transcript of his comments on CNBC-TV18.

With the results of the Gujarat Elections today and the Parliament winter session coming to an end, it is officially the last day of the big newsflow for 2012. After that, shutters are down on news flow. Let’s see if the market can climb on the back of today’s news to get back to the 2012 high, which is not very far away.

On yesterday’s session:

Yesterday was good, but let us see how market deal with global markets right now because there has been a bit of a set back. I think there might have been a bit of a turn in negotiations as well in the West. So, these things will continue to be volatile.

We are approaching fairly significant resistance zones for our market, the 2012 peak. At this point, global markets should not let us down. We should be able to get a little bit of support from here to get to that 6,000 level.

The local newsflow is pretty much done at the end of the day. So, next couple of days is our best chance of clearing pass this congestion zone, with a little bit of tailwind from global markets and powered on by bit of sentiment, which might come through today from the local newsflow.

On Gujarat election results:

There might be some sentiment rub-off today. But beyond that, I don’t think there is any material takeaway for the market. If Narendra Modi goes on to win today as everyone suggests, people will talk about what implications it will have on BJP’s Prime Ministerial candidate for 2014. But, at the end of this Parliament session, most people realise that there is now an even chance of the government lasting its full term as opposed to earlier. So, if you are talking about elections in 2014, it is too premature to start talking about candidates and stuff like that.

The market might like Narendra Modi’s victory because market is quite partial to him and believe that he may do good things, if he comes to power, big if there. But just to that extent there might be a little bit of sentiment fillip in the market, if his victory is confirmed. But beyond that I think it is too premature to start drawing scenarios for 2014 elections and any reaction today will just be that, a bit of sentiment rub-off, nothing more material.

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