Stock market still not factoring risk of non-Modi government in 2019, says CLSA’s India strategist

By: | Published: August 6, 2018 10:45 AM

Even though opposition is getting united to claim a majority in the upcoming 2019 general elections, the stock market is still not factoring in a risk around the formation of a government other than that led by BJP.

Despite the opposition parties building a united front against BJP-led NDA, Modi’s ability to swing fence sitters should not be underestimated, Mahesh Nandurkar said.

Even though opposition is getting united to claim majority in the upcoming 2019 general elections, stock market is still not factoring in a risk around formation of a government other than that led by Bharatiya Janata Party (BJP). Equity market still not building in risk of non-BJP government, Mahesh Nandurkar, India strategist, CLSA told ET Now. Talking more about the possible scenario in the upcoming elections, CLSA strategist said that BJP may gain in the eastern and north-eastern states of India in the coming elections. However, SP-BSP alliance may offer it tough resistance in Uttar Pradesh, he added.

Also read: Share Market Live: Sensex, Nifty off from records; HDFC AMC rockets 67% on first day of stock market trading

Despite the opposition parties building a united front against BJP-led NDA, Modi’s ability to swing fence sitters should not be underestimated, Mahesh Nandurkar also told ET Now. He also said that the emotional factors with respect to some action against economic offenders can influence the 2019 elections.

Meanwhile, Indian stock markets (Sensex and Nifty) inched up after starting higher on Monday with BSE Sensex breaching 37,800 and NSE Nifty surpassing the psychological mark of 11,400 for the first time in stock market history. Shares of HDFC AMC marked a blockbuster stock market debut on Monday and listed at 58% premium from the issue price fixed during its IPO (initial public offering).

The stock of HDFC AMC 66.55% to a day’s high of Rs 1,832 on BSE while the stock advanced 66.82% to a day’s top of Rs 1,835 on NSE. The benchmark Sensex rose 249.09 points to mark a fresh all-time high at 37,805.25 following the sharp rally in the heavyweight shares of ICICI Bank, SBI, ITC and HDFC Bank. Stocks across Asia advanced on Monday as China’s efforts to stop sharp declines in its currency and capital flight supported wider sentiment in the region, although the escalating Sino-US trade conflict has capped gains, Reuters said in a report.

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