Markets head for positive opening on Tuesday following elections' outcome
Following the outcome of elections to five state assemblies, market analysts have predicted a positive opening for the Indian equity markets on Tuesday.
With the BJP set to return to power in Uttar Pradesh (UP) after 15 years and the Congress gaining the lead in Punjab, market observers were of the view that the victory of the BJP in UP is of most political importance and would infuse positive sentiments in the domestic bourses.
"Considering the fact that its a thumping victory for the BJP, it will be a positive opening for the equity markets. UP is a standout state and politically most important. It will be giving a lot of political equity to the government and this is going to be positive for the markets," Anindya Banerjee, Associate Vice President for Currency Derivatives with Kotak Securities, told IANS on Saturday.
"We can see a gap up opening in the Nifty -- possibly 100 points plus. However, there will be a gap down for the dollar/rupee, possibly at the 66.30-40 levels (indicating strengthening of rupee at the opening level)," he added.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, a spurt is expected in the equities markets post the assembly election results, especially the UP poll results.
"With the UP mandate, the government may further be emboldened to work towards further reforms in all realms of the government which will lead to structural changes in the country over the next seven years," Desai said.
"The rally might propel the NSE Nifty above 9,000 points mark or 120 points upward movement."
On Friday, the benchmark indices had closed with marginal gains on the back of a strong rupee, coupled with fresh inflow of foreign funds and positive global cues.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) closed at 8,934.55 points -- up 7.55 points or 0.08%. Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE rose by 17.10 points or 0.06% to close at 28,946.23 points.