Bulls to Tighten Grip on D-Street as Exit Polls Predict BJP-led NDA Victory
As the exit polls predict a clear victory for the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) in the Lok Sabha elections, market analysts are expecting a bullish trend on D-Street in the upcoming session on Monday, June 3. Most exit polls indicate that the NDA may win over 350 of the 543 seats in the lower house of parliament, easing election-related jitters among investors.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “Exit polls results which indicate clear victory for the NDA with around 360 seats completely removes the so-called election jitters which have been weighing on markets in May. This comes as a shot in the arm for the bulls who will trigger a big rally in the market on Monday.”
Several exit polls have also projected a massive win for the BJP in states like Karnataka, while the India TV-CNX poll suggests a sweep for the NDA in Andhra Pradesh. It is important to note that exit polls are not the official election results, which will be declared by the Election Commission of India on June 4.
The NDA’s potential two-thirds majority in the Lok Sabha, as projected by most exit polls, is expected to have a positive impact on the stock markets. The GDP growth data released on Friday, showing India as the world’s fastest-growing major economy, further adds to the bullish sentiment among market analysts.
Largecaps in financials, capital goods, automobiles, and telecom sectors are likely to lead the rally on Monday. While the market may witness heightened volatility as the election results approach, analysts believe that any correctional fall may be accompanied by fresh buying.
Overall, the market sentiment is bullish, with analysts predicting a positive response to the exit polls on June 3. However, investors are advised to consult with certified experts before making any investment decisions, as market conditions can change rapidly.
