Gujarat Elections: Here is How it can Impact Indian Market Sentiments

The result for Gujarat Elections are due on 18th of this month and Market’s might be up for a toss if the results are against street’s expectations.

 For the last 15 years, BJP in the state of Gujarat has witnessed an unprecedented victory. The state has seen significant transformation but a different story is whirling its way this time. Congress and its allies with the inevitable Patidar’s may seek the light of the day as some street analysts might predict.

The exit polls have strengthened claims for BJP to have an unabated win this time. But the results might either support a rally for some stock on the market front or might leave it in distress.

Gujrat Elections Exit Polls and Nifty50- What’s in store?

Both Nifty and Sensex opened at higher levels after Exit Polls. Nifty50 of the National Stock Exchange (NSE) was up by 93 points on Friday, trading at 10,346 points. The 30 strip Sensex of the Bombay Stock Exchange (BSE) maneuvered to 33,456 points with an increase of 290 points.

Top analysts feel that the exit polls if reflect a true picture or more likely, has a sense of the final results might prove beneficial for investors.

A smooth and stable political stance ensure quick economic recovery and project turnaround which enhance company’s performance. It is often believed that the present government seeks to fulfill the country’s need to bug up its game on the economic front and mitigate the issue that has crept in due to erosion in the fiscal deficit.

Not just a National Game

Not only are citizens of India or Industry veterans, the Gujarat elections have been closely monitored by government officials in China. With a lot at stake in terms of companies being held by Chinese Nationals and the Belt & Road initiative (OBOR) by the Chinese Government political stability goes a long way in sound regulations.

There are times when people have faced unexpected twists for India’s development. Be it de-monetization or the advent of GST, the results of whom await the conclusion. Market sentiments are directly impacted what macroeconomic issue the country has been facing.

Whether the street sentiments are euphoric or not, all will be revealed on 18th. So stay tuned for how stocks perform this opening Monday.