“The markets are forward looking & had discounted the anti incumbency wave in the Hindi heartland. The results of MP & Rajasthan being so close are +ve for the BJP. In the end we are 4 months away from the general elections where the call is Modi magic will work. On the other hand the RBI Governor resignation also saw a knee-jerk reaction being bought into solely for the reason that the new Governor would be more communicative, responsive & will have serious interaction to improve the monitory outlook which was grappling for tight liquidity after the shadow bank problems of IL&FS. With crude in a falling market money on the sidelines would use opportunities like today to enter Indian stocks with a slightly longer term view as buy,” Sanjiv Bhasin, executive vice president, markets and corporate affairs, at IIFL told Moneycontrol.
The Indian rupee has recovered sharply from its low points, surging over 50 paise to around 71.88 per US dollar.
Markets will now revert to merit-based investing: Deven Choksey
The Bharatiya Janata party needs to change its communication strategy. Instead of talking wrong doings of the Congress, talking about punishment to Congress family members and mimicking them, BJP is required to talk more about what would they do differently in terms of accelerating growth in the economy. Investors expected BJP to talk positively.
Sensex, Nifty trade lowerThe BSE Sensex opened at 34,584.13, and hit a low of 34,458.56, down 501.16 points. The Nifty 50 opened at 10,350.05, and fell 153.35 points to a low of 10,335.10.
The BSE Sensex was down 500 points and the Nifty 50 plunged below the 10,400 level ahead of the final assembly election results from five states. Benchmark indices BSE Sensex and NSE’s Nifty 50 slumped 2% in the previous session after exit polls released after market hours on Friday projected the BJP losing power in Rajasthan and facing a tight finish in Madhya Pradesh and Chhattisgarh— three states where it is in power.
Another key event that will drive the markets today was the resignation of RBI governor Urjit Patel. Monday’s shock resignation of Patel, following a prolonged stand-off between the RBI and the government, has added to the uncertainty. The centre has been seeking to reduce curbs on lending, and gain access to RBI reserves.