Within few hour of conclusion of voting in the last phase of this long hard battled election, there has been a flurry of EXIT POLLS from different sources. Most foresee Narender Modi to continue to be in power for next 5 years, with an handsome win in 2019 Lok Sabha elections.
Here are few of the exit poll predictions:
The news of victory for the BJP-led National Democratic Alliance (NDA) & in the Lok Sabha elections 2019, showed positive impact on stock markets. This morning Stocks added more than Rs 3 Lakhs Crores to investor’s holdings. The market capitalization rose to Rs149 Lakh Crores within few minutes of market opening. Markets love continuity & Mr. Narendra Modi not returning back to office would have meant ambiguity over continuance of policies.
The results of exit polls have brought cheers to the Markets. At the time of writing this article, every stock index was up by substantial margin.
Not just equity, even DEBT markets cheered the EXIT POLLS.
Stock market may ride this euphoria over next few days. Yet, the exit poll can’t be taken as words set in stone. In 2004 and 2009 elections, most of the exit polls greatly inflated the BJP-led National Democratic Alliance’s results, and in 2014, underestimated its tally. In recently concluded Australian election exit polls were completely wrong. Therefore, investors should exercise caution and invest on the basis of market fundamentals. Sentiment change is like roller coasters and difficult to predict.