As you all know that the results of the general elections are going to be out soon,you might be wondering its impact on the stock market.Many analysts have been contemplating on the pros and cons of different parties winning the elections and forming a government.Now you can see that the two major parties-UPA(United progressive Alliance) and NDA(National Democratic Alliance) have started hunting for allies and have forgotten their old foes.Looking at the current scenario,even a chameleon will start feeling insecure(yaar isme bhi insaan aage nikal gaye,humse bhi tez rang badalte hain!!!).The Congress is trying to get hold of Samajwadi Party(just a few days back it had made derogatory remarks about Amar Singh).BJP will surely get support from Shiv Sena and is trying to woo Jailalitha.One thing is clear that no single party will get a clear majority and the two big parties(BJP and Congress)will have to take support from regional parties.Another thing is that no third front or fourth front will come to power.So in a way the markets are spared from what could be a "bear" hug.
Now looking at all the permutations and combinations,the following can be concluded.
If Congress comes to power-
1.The market will see about a 10% rise if it joins hands with 3-4 parties.
2.The market will see a downfall for some time if it joins hands with 8-10 parties.
If the BJP comes to power-
1.The market will be flat for some time as it will take some time for the new government to become active.
The thing which is for us to see is the fate of the market if UPA joins hands with CPM.Please give your views on this article.
"JAI HIND"
i want congress to come to power......thats all!!!
ReplyDeletei think if NDA ( BJP Centred) govt. comes to power then infrastructure and industry would show a thumbs up...markets would rally more than as compared to if Congress would have come to power....UPA or NDA that would be one of the alliances which would form either a majority govt. or a minority govt. with outside support...The chances of Regional Leader holding the HOT Seat are still there....Left would provided outright support i think to UPA and i think it would do only because to shun the BJP............
ReplyDeleteSo Congress has rung up a big surprise by improving its performance vastly in states of UP, Bengal( wiht Trinamool), Andhra( inspite of Anti Incumbency) and UP. sensex and markets in general will show according to me a peak of atleast 500 points if not more on monday i guess....The reason because The numbers are hinting towards a stable govt. which will last for 5 years and LEFT is almost out of equation now........I think Nuclear Deal backing out hurt left most along with Kerela drama....for BJP i think their failure to embrace the reality of new world and VARUN incident have hurt them most...They did not also grab the JINNAH moment...For Congress it was their PRO RURAL,FARMER policy which resulted in their best performance since 1991 along with efforts of its new crop like Rahul Gandhi, Jyotirdya Scindia, Milind Deora .........
ReplyDeleteWow! what n innovative way to make a layman understand the power of Trading..Keep up the good work..
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