The journey leading to the 18th Lok Sabha reached its penultimate destination when the final phase of the seven-phase election ended on Saturday, June 1. The results for 543 seats will be declared on June 4. But, before those festivities, a mini-blitzkrieg of numbers transpired on June 1 itself, when myriad agencies released their own exit poll numbers.
Election Euphoria For Indices?
In these exit polls, a cumulative account of most of them indicates the return of the BJP-led NDA, for a third-straight term. From the perspective of the markets, this is seen by many observers as 'good news'. Markets in the past have reacted positively to the BJP's poll performance with a tangible level of optimism.
This, as the party, according to some, is seen as a pro-business party. In addition, this sentiment reflects the global phenomenon exhibited by the equity markets, when the incumbent government does well. Here, continuity and consistency in policymaking and greater stability are key factors in place, as long as the government is popular.
As the Q4 earnings season draws to a close, election results on June 4 could, in all probability, be a major driver of most happenings at Dalal Street this week.
NSE Nifty closed on 22,530.70, gaining 42.05 points or 0.19 per cent. Meanwhile, Nifty Bank also ended in green, with gains of 301.66 points or 0.62 per cent, to end at 49,983.95. | File/ Representative image
Auto Sales and GDP Numbers
In addition, the auto sales results, released on June 1, may also placate the performance of the automobile and mobility companies and the sector at large when the indices open for trade on June 3. Other factors that could play a role in the performance could be the GST and economy numbers that were released on June 1 and May 31, respectively. The Indian economy grew at 7.8 per cent in Q4 FY24, while it is estimated to grow at 8.2 per cent.
Previously, the Indian market had a remarkable week, as after a jump of over 1 per cent across the major indices (here, the indices high lifetime high marks), the markets stabilized later on in the week.
The week concluded on Friday, 30 May, after the RBI report, on an optimistic note. The markets ended in green, with the BSE Sensex reaching 73,961.31, gaining 75.71 or 0.10 per cent. NSE Nifty closed on 22,530.70, gaining 42.05 points or 0.19 per cent. Meanwhile, Nifty Bank also ended in green, with gains of 301.66 points or 0.62 per cent, to end at 49,983.95.
