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

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
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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.