At the first sound of bells on Monday, equity market is all set to hit all-time highs but sustenance remains a suspect. Analysts say Nifty is barely 2 percent away from the historic high level and BJP’s comfortable win in four states will give adequate push to accomplish that feat.
The dampening factor, however, will come into play sooner than later. The euphoria will be ebbed by other pressing factors, says Advent Advisors’ KR Bharat. The market’s all-time intra-day high stands at 6357.1 attained on January 8, 2008. Its all-time closing high of 6317.35 took place a few sessions back on November 3, 2013.
The BSE benchmark Sensex touched intra-day all-time high of 21293.88 on November 1, 2013. Sounding a word of caution, Punita Kumar Sinha of Pacific Paradigm Advisors said the euphoria may be short-lived because global factors may not compliment the mood. But market mood will remain bouyant in general, she said. Religare Capital Markets is however more optimistic than others. In a statement, Gautam Trivedi, Managing Director & Head of Equities, Religare Capital Markets said: “The election results were better than forecasted by the exit polls.
The equity markets will respond very positively as investors will likely read this as a win for the NDA in June. The fact that the Congress got only 30% of the vote, their worst performance ever – suggests that voters are clearly voting for a change. Inflation, corruption and lack of job creation are the main issues. The question is with six months to go for general election, what steps will the UPA now take? There is concern that if they resort to large scale spending then the fisc will go out of whack.
The dampening factor, however, will come into play sooner than later. The euphoria will be ebbed by other pressing factors, says Advent Advisors’ KR Bharat. The market’s all-time intra-day high stands at 6357.1 attained on January 8, 2008. Its all-time closing high of 6317.35 took place a few sessions back on November 3, 2013.
The BSE benchmark Sensex touched intra-day all-time high of 21293.88 on November 1, 2013. Sounding a word of caution, Punita Kumar Sinha of Pacific Paradigm Advisors said the euphoria may be short-lived because global factors may not compliment the mood. But market mood will remain bouyant in general, she said. Religare Capital Markets is however more optimistic than others. In a statement, Gautam Trivedi, Managing Director & Head of Equities, Religare Capital Markets said: “The election results were better than forecasted by the exit polls.
The equity markets will respond very positively as investors will likely read this as a win for the NDA in June. The fact that the Congress got only 30% of the vote, their worst performance ever – suggests that voters are clearly voting for a change. Inflation, corruption and lack of job creation are the main issues. The question is with six months to go for general election, what steps will the UPA now take? There is concern that if they resort to large scale spending then the fisc will go out of whack.
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