Leading market experts have welcomed the exit poll estimates that predict a huge win for the ruling BJP-led NDA coalition and believe that stocks and indices will register strong gains on Monday even as the continuity of the current government is already factored in.
Market veteran Sushil Kedia believes there could be an “explosion” in the markets on Monday and most stocks could gain up to 20% over the week, which will also see the election results being declared on Tuesday (June 4).
“It will be an explosion. Many stocks through the next week may go up 20%. Even stocks that I expect are going to be getting into a state of weakness over the next three months or next six months, they will also get whipped up,” says Kedia.
“I don't want to make extreme forecasts. But there is euphoria going to be hitting the markets tomorrow itself. Those who were scared, or hedged, will rush in on Monday,” he adds while advising investors to keep an eye on the larger trades over the next three months and avoid pockets that are already euphoric and where there may be a final bull drag.
In a similar context, Vikas Khemani, Founder, Carnelian Asset Management says that one could see some amount of short covering in the markets on Monday and then it will be back to normal in the next 4-5 days.
“It's very hard to call out (on market movement). A 2-4% kind of movement can be there, between Monday and Tuesday, by the time actual results come out because these are still exit polls. We will have to wait out for the real results but broadly the trend is clear,” says Khemani while adding that significant buying is likely to be witnessed over the next few months.
As per News 18 Exit Polls, the NDA coalition is expected to get around 355-370 seats with BJP accounting for around 305-315 seats. The opposition I.N.D.I.A alliance is expected to get 125-140 with Congress bagging in the range of 62 to 72 seats.
Meanwhile, Nilesh Shah of Kotak Mutual Fund is of the view markets are not only pricing in continuity of government but are also looking forward to announcement in first 100 days in terms of big bang reform.
“It's always difficult to predict market in this short term but I will say circuit up looks unlikely. If we divide market on the investors and traders, the investors are loaded on the market,” says Shah.
Also Read: Raamdeo Agrawal on Exit Poll: India’s market-cap will double to $10 trillion in next 4-5 years
Interestingly, market veteran and Chairman & Co-Founder of Motilal Oswal Financial Services Raamdeo Agrawal believes that while the exit polls have predicted a huge sweep for the ruling BJP party, the actual number could cross 400 as well and that would pave the way for the Indian stock market doubling in size and touching a market capitalisation of $10 trillion in the next 4-5 years.
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