The predictions of exit polls already had a major effect on the Sensex. Experts believed that if the predictions failed it could lead to a knee-jerk reaction in the stock market. But the latest updates reveal that indeed the exit polls were right in predicting the BJP-led alliance as the leading group in this year’s elections.
If the trend continues Narendra Modi is all poised to take oath for his second term as the Prime Minister of India. And this anticipation and excitement have led to the Sensex leaping beyond 40,000 for the first time. Incidentally, it is also an indication that the investors from the country were hoping for the NDA to return to power.
Sensex sings Namo Namo
Senesex hits 40000 for the first time ever ?
— Chandni Agrawal (@chandnia941) May 23, 2019
NSE Nifty & S&P BSE Sensex Expected To Rally Sharply
NDA win in the elections is expected to trigger off a sharp rallying between both the benchmark indices of the Indian stock market- S & P BSE Sensex and NSE Nifty. Experts predicted that there is a strong possibility of the Sensex breaching the 40,000 marks if BJP becomes the single largest party and it did happen.
Nifty too may escalate beyond its earlier highs and cross the mark of 1200.
Twitter Is Already In Celebration Mode
NIFTY hits 12000!!
SENSEX hits 40000!!
— Nigel D'Souza (@Nigel__DSouza) May 23, 2019
Volatility Continued As Market Waited For Election Results
The evening before 23 May was one of the scariest waits for the investors even though the market ended on a decent note. Nifty touched the 11,700 marks while Sensex ended at 39,110.21. The market continued to be volatile while the investors remained confident about the return of NDA government and Narendra Modi as the prime minister.
Many brokerages feared that if there is a mismatch and the NDA alliance fails to get a mandate enough to form a government, the market may face heavy correction. However, it will eventually shift its focus on fundamentals such as company earnings, global cues, and growth.
Brokerages have also warned investors to go slow in these few days until the results are clear. The fear-gauge India VIX touched a four-year high yesterday. It indicates that everyone is in doubt as to how the market will react as the results will start coming in.
Nifty 50 and SENSEX recovered from loses and recovery looks strong enough to hit the previous highs and test 37000 to 40000 range for SENSEX and NIFTY 50 might test 11500 to 13200 range by end of dec 2018.. More investments will flow in tonnes in India if that happens for sure. pic.twitter.com/NF9ZBQBiD7
— Arun Sadanand Pai (@ArunSadanandPai) February 8, 2018