Stock Markets may take UPA win a positive move
New Delhi: Indian stock markets are likely to react positively on Congress led United Progressive Alliance winning Lok Sabha elections, which the results were out today.
The initial response on various TV Channels is positive.
The domestic brokerage firm Angel Broking Chairman and Managing Director Dinesh Thakkar termed the event as positive surprise.
“The election results have come as a positive surprise and are expected to go down well with the markets considering that markets like continuity of government policies, mindsets and ideologies. The UPA’s 250+ tally has managed to beat the most optimistic political analyst on the street and this ‘thumping’ victory has set the stage for the Congress led UPA to come back to power. Further, the possibility that the UPA could form the government without the Left will further soothe investors’ nerves. The markets are expected to rally as fresh money from FIIs and those waiting on the sidelines on account of the political uncertainty, makes its way into Indian stockmarkets. Investors must remain ‘long’ on India to take advantage of the long-term wealth creation opportunities that Indian stockmarkets have to offer,” Dinesh Thakkar said.
The investment banker Helios head Arora said Bombay Stock Exchange Sensex may hit upper circuit on Monday on UPA win.
Earlier there were some fears, but now, the Sensex unlikely to move below 10000 now, Enam Securities head Chokhani said.
High Networth investor Rakesh Jhunjhunwala is bullish on the election development and said he won’t be surprised if Nifty tops 4500 in few days.
Indiainfoline Chairman Jain said, the people have given a clear mandate against the Left parties policies.
“The election results have pleasantly surprised the market participants. People of India have given verdict for a stable government and against policies of the ‘Left’. UPA at close to 260, will be in a much better bargaining position. In the last 5 years, as Congress was playing a survival game, they could not do much with reforms and policy decisions such as FDI in insurance, retail, banking reforms etc,” Jain said.
“Now expectations are high. Market will be euphoric and may open about 10% higher. Therefore one has to be cautious but this may possibly be a beginning of another bull market. There will be opportunities for investors to invest. Once euphoria is over, one has to be cautious about negative cues from global markets, over supply of papers and swelling fiscal deficits,” Jain said.
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Yes Election 2009 results test positive and surely it is a reason for the markets to cheer.