oppn parties How Will The Poll Results Affect The Stock Market?

News Snippets

  • Supreme Court sentences Congress leader Navjot Singh Sidhu to one year rigorous imprisonment in the 1988 road rage case
  • Home Minister Amit Shah says rights should not be demanded before fulfilling responsibilities and that universities are no place to wage ideological battles
  • NIA court convicts JKLF chief Yasin Malik in terror funding case after he pleads guilty of all charges
  • A study backed by PM-EAC has recommended universal basic income and urban job guarantee and greater spend on social sector schemes
  • Supreme Court rules that the decisions of the GST Council are not binding on the Centre and the states, leaving the door open for states to levy further taxes
  • After sustained campaign by BJP MP Arjun Singh, the Centre today withdrew the jute price cap order, industry welcomes move
  • Akasa Air might postpone its July launch due to late arrival of aircrafts
  • Metro Cash & Carry decides to sell Indian operations. All major players, including Reliance retail and Amazon, are likely to bid
  • Local and global cues spook the markets on Friday - Sensex crashes 1416 points to 52792 and Nifty by 430 points to 15809
  • IPL: RCB crushes GT by 8 wickets as Virat Kohli returns to form with a well-made half century
  • Nikhat Zareen is world champion in flyweight category. Wins gold at Women's World Championships at Instanbul
  • Supreme Court uses its special powers under Article 124 to release A G Perarivalan, a Rajiv Gandhi assassination convict
  • Indrani Mukherjea, prime accused in the Sheena Bora murder case, gets bail from Supreme Court after 6.5 years in jail
  • Hardik Patel quits Congress, says top leaders distracted by mobile phones and state leadership busy arranging 'chicken sandwiches' for them
  • Anil Baijal resigns as Lieutenant Governor of Delhi citing "personal reasons"
Nikhat Zareen is crowned world champion in the flyweight (52Kg) category at the Women's World Championships in Istanbul /////// Supreme Court sentences Navjot Singh Sidhu to rigorous imprisonment of one year in the road rage case /////// Sunil Jakhar, who quit the Congress a few days ago, joins the BJP
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How Will The Poll Results Affect The Stock Market?

By Linus Garg
First publised on 2019-05-22 11:33:56

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
The stock markets dropped yesterday after touching record highs on the day exit polls predicted a comfortable majority for the NDA. That day, stocks had shown the highest single day jump in 10 years. But most analysts say that the drop yesterday was on account of profit taking and is not a reversal of the uptrend. In fact, they say that if results mirror the exit polls, the Nifty well might breach the 12000 level or even inch close to 12500.

To support their theory, analysts point out to the open interest being shown by traders at 12000 and even 12500 levels. They say that since no trades are being squared up for these levels – in fact, trades are being added – it is clear that the market is going to move upwards and touch dizzying heights. Only a complete reversal of the trends shown in the exit polls will cause a crash in the market. Analysts feel that given that most exit polls show a similar trend of majority for NDA, such a scenario is unlikely.

But what should a small trader do in such a scenario? The markets are already at very high levels. One feels that apart from a small rally, the markets have already taken in the fact that the NDA will return again ensuring policy continuity. But exit polls have gone wrong in the past. A small trader is more likely to burn his fingers at these levels if he or she does not do his homework properly. The chances of making money in the short term are decidedly low. Hence, small traders will find it better not to invest until a clearer trend emerges.