Moneycontrol
Get App
you are here: HomeNewsIndia
Last Updated : Feb 20, 2019 06:22 PM IST | Source: Moneycontrol.com

Modi is still popular, but Pulwama terror strike could impact elections result: CLSA

The report further highlighted that various govt schemes for the rural poor have worked well, but the fact that all these schemes aren’t free, it might limit their popularity

Moneycontrol News @moneycontrolcom

PM Modi is still the most popular leader, but the rising tensions between India-Pakistan following the recent Pulwama event can have a political impact depending on how the situation unfolds, CLSA said in a report.

CLSA’s team spent seven days on the road in Uttar Pradesh over the last two weeks and found that Modi remains quite popular on ground across different castes.

“While the SP-BSP combine is a formidable opposition to BJP, the entry of Priyanka Gandhi can take away some vote share from the SP-BSP. If not formal, at least, an informal alliance with the Congress will be required for the combine to work,” it said.

Close

In short, domestic flows will likely reflect these political uncertainties over the next three months, driving the markets lower, it said.

CLSA further added that it will be difficult for BJP to replicate its 2014 success. “Our discussions with various politicians, including those of the BJP, indicate that the BJP would likely win 40-45 seats (out of 80) in UP, on the higher side as against 73 back in 2014,” it said.

Several opinion polls put that number down to 25 on the lower side. PM Modi’s decisive leadership and his relatively clean record on the issues of corruption are the strong points in favour of the BJP.

CLSA’s interactions with potential voters/opinion makers reveal that anti-incumbency is setting in and BJP will need to actively encourage some of its supporters/voters.

Priyanka Gandhi has energised Congress:

There’s a broad consensus that Priyanka Gandhi’s entry in politics has energised Congress workers. There is a possibility of disgruntled party workers/voters from SP, BSP, after the two joined hands, shifting to the Congress, which might help the BJP.

“We understand that the SP-BSP might tie-up with the Congress, at least informally, which could possibly limit the gains for the BJP,” said the report.

Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Feb 20, 2019 11:27 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant