Assembly Elections 2016: Experts believe the result may not impact equity markets as things have already factored in the past few trading sessions.
Counting of votes for Assembly elections in West Bengal, Tamil Nadu, Assam, Kerala and Puducherry will be held on Thursday. For stock market perspective, experts believe the result may not impact equity markets as things have already factored in the past few trading sessions.
In the past three trading sessions, the benchmark BSE Sensex advanced 215.04 points, or 0.84 per cent, to 25,704.61 till May 18. Similarly, the broader index NSE Nifty gained 55.25 points, or 0.70 per cent to 7870.15 during the same period.
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According to market experts, benchmark indices gained after investors raised their exposure on Monday and Tuesday following exit polls that showed BJP coming to power in Assam for the first time. However, Sensex and Nifty wiped off some of their gains on Wednesday on the back of weak global cues.
The 30-share index, closed 69 points, or 0.27 per cent, down at 25704.61 on Wednesday, while the 50-share index slipped 20.60 points, or 0.26 per cent, at 7,846.75.
For Thursday’s trading session, independent market expert Ambareesh Baliga said, “Election result will not impact domestic equity markets much on Thursday as they has already factored in the outcome in the past few trading sessions. We have seen some rally in markets after the exit polls showing BJP will get majority in Assam.”
G Chokkalingam, founder, Equinomics Research & Advisory seconds Baliga and said, “Markets are not going to react on the tomorrow’s result. BJP does not have any major presence in any of these states and there is no expectation of BJP doing well in West Bengal and Tamil Nadu.”
Most exit polls have predicted a return of Left Front in Kerala and Congress-DMK alliance in Puducherry while the DMK-Congress alliance and AIADMK are in close battle in Tamil Nadu.
All polls predicted a BJP win in Assam, raising party hopes of its first government in a north-eastern state when votes are counted May 19.