Lok Sabha Exit Polls Impact on D-Street and Investor Expectations

The results of the enormous, six-week long Lok Sabha elections, which are scheduled for Tuesday, June 4, to establish a new government in the greatest democracy in the world, are now the focus of attention.

The Nifty50 managed to snap a five-day losing run as domestic equity indices concluded another session of seesaw swings on a more upbeat note. Investors were waiting for the results of exit polls, which were conducted over the weekend after a seven-phase polling procedure from April 19 to June 1. Now, all eyes are on the results of the Lok Sabha elections, which are scheduled for the end of this huge six-week polling process to choose a new government in the largest democracy in the world. June 4, a Tuesday.

Lok Sabha Exit Polls Impact on D-Street and Invest In the meantime, exit polls indicate that the National Democratic Alliance (NDA), led by the BJP, would prevail in the 2024 Lok Sabha Elections. After several days of erratic trading, many analysts saw this as positive news for Dalal Street.

Things to be aware of next week, Lok Sabha Exit Polls Impact on D-Street and Investor Expectations

The outcome of this week’s general elections and the Reserve Bank of India’s (RBI) interest rate decision will have a significant impact on trading in the equity market, according to analysts.

“The outcome of the Lok Sabha elections, which are set for Tuesday, is the most anticipated event of the last five years. Market players will respond to Monday’s exit polls before then.

“The event is being regarded cautiously by the market, and the good surprise The exit polls may spark a surge because most of them give the NDA more than 350 seats. On the other hand, an unexpected decline in actual results could cause the market to react hastily, according to Santosh Meena, Head of Research at Swastika Investment Ltd.

Reiterating a viewpoint that The markets may not have priced in such high numbers, and we could see some reflection of that on Monday beginning trade, according to Narendra Solanki, Head Fundamental Research-Investment Services, Anand Rathi Shares and Stock Brokers. “The exit poll numbers are very strong for the incumbent government,” he said.

Overall, both the short- and long-term effects on the markets are favorable, according to Solanki. Furthermore, he mentioned that the newly disclosed GDP growth Data ought to back up the current upward momentum.

Meena of Swastika Investment Ltd. further stated that the RBI policy statement on June 7 will be the next significant catalyst after the election results.

“The actions of foreign investors following the election results will be an important area to watch. Global macroeconomic data from the US and China will also be crucial in influencing market mood, according to Meena.

The PMI numbers for manufacturing and services for May are expected to be released sometime this week.

Impact of stocks markets Lok Sabha Exit Polls Impact on D-Street and Invest

The NDA’s overwhelming victory with about 360 seats, according to exit poll figures, allays the so-called election worries that had been affecting markets since May. This is a spontaneous post.in the arm for the bulls who will start a significant market rally on Monday, Geojit Financial Services Chief Investment Strategist V K Vijayakumar stated.

The stronger-than-expected 8.2 percent rise in GDP data for FY24 that were released after market hours on Friday will give bulls even more confidence, he continued.

According to a report by Emkay Research, investors’ concerns would probably be allayed if the final result matched exit polls since political and policy continuity will benefit risk assets in the short term and economic stability in the medium term. The NSE Nifty fell 426.4 points, or 1.85%, last week, while the 30-share BSE Sensex plunged 1,449 points, or 1.92 percent.

Lok Sabha Exit Polls Impact on D-Street and Investor Expectations On May 27, the BSE benchmark reached an all-time high of 76,009.68. On May 27, the Nifty also hit its all-time high of 23,110.80.

“Historical trends from the previous two elections outcome in 2014 and 2019 have shown patterns,” stated Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd. “The market closed with minimal changes after experiencing significant volatility during the early trading hours.” (Lok Sabha Exit Polls Impact on D-Street and Invest)

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