BSE Sensex, NSE Nifty at all-time highs on poll euphoria, brokerages raise alert over Narendra Modi

May 13 2014, 19:09 IST
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Exit polls had projected 249-290 seats to the Narendra Modi-led BJP, which is close to the half-way mark in Lok Sabha. PTI Exit polls had projected 249-290 seats to the Narendra Modi-led BJP, which is close to the half-way mark in Lok Sabha. PTI
SummaryBrokerages says uncertainty still marks Narendra Modi's elevation to post of PM.

in a research report said: "We view exit polls with some caution based on the results in 2004 and 2009, and especially in this case where there appears to be a differential between them and the majority of pre-election opinion polls."

WealthRays in a research report said a strong majority could see a huge rise in the stock market due to the formation of a stable government and the expectation of rise in GDP, while a fractured mandate could lead to steep fall in the stock market due to an unstable government that could lead to decision making complexities.

"A positive election outcome may not yet be priced in. In our view, a more euphoric sentiment among investors (NDA near or more than 272) would likely imply higher multiples, though sustainability would depend on actual delivery in policymaking hopes," UBS said. The Nifty had hit lower circuits and lost over 20 per cent in two trading sessions on May 14 and May 17, 2004 after 14th Lok Sabha General Election results.

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