Market may see a decline for few days if Delhi Assembly elections results do not favour Narendra Modi-led Bharatiya Janata Party (BJP) in a face-off with Arvind Kejriwal-led Aam Aadmi Party (AAP), multiple investors say.
Narendra Modi faces possible state poll defeat, clouding economic growth prospects
Most opinion polls suggest Arvind Kejriwal led Aam Aadmi Party would win.
Check out the opinion poll conducted by FE.com on Delhi Assembly elections:
Market is concerned whether election results are local issue or whether it indicates some loss of popularity for the ruling BJP, Bank of America Merri Lynch says.
“Markets don’t like populist measures. I expect AAP to get at least 10 less seats than previous time in Delhi,” said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance.
Election in Delhi will be held on Saturday with results due on Tuesday.
Check out how many seats each party may win as per this opinion poll:
Also, Oct-Dec result have been disappointing especially with higher bad loans at banks and slowing volumes in FMCG.
Market likely to see a correction of around 5 pct over next 2 months on account of supply of paper, rich valuations and weak earnings.
Who will be the next Delhi chief minister? Check out opinion poll: