After the end of the seventh and the final phase of General Election 2019, the most trending topic in social media is the Exit Poll 2019. According to PTI, most exit polls are forecasting the win of the ruling BJP led NDA. During the initial part of the week, the mood of the equity market is set in accordance to the exit poll trends and with the result of Lok Sabha Election 2019 on May 23, the road of the stock market will be built.
According to the stock market analysts, with the high-octane election-related events, the investors should be aware of the volatility. Until the election results are out, the stock market will be quite indecisive.
Mustafa Nadeem, CEO, Epic Research said, ”This week there is an event that is able to produce long-term trends in the market and is the factor that sets the tone for wealth creation. The political events like election results usually produce trends that last for years. Hence, it becomes very important for the economy and investors”. He also said there is a possibility that there will be some sharp movements in the market condition but the exit polls help in bringing some decisiveness in the table.
Some major companies like Canara Bank, Tata Motors, Cipla has announced to publish their financial report card this week which would impact in trading due to quarterly earnings. Moreover, the trading habit would also be influenced by the crude oil prices, US-China trade-related issues, trends of foreign funds and movement of rupees.
Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking Ltd. said, “Indian markets have shown tremendous strength before the long-awaited exit polls, despite the ongoing ambiguity in US-China trade talks”.
The market has seen some change in its trends during the last week. The BSE Sensex has gained 1.24% or 467.78 points. The broader NIFTY has increased by 1.33% or 150.05 points to settle at 11,407.15. Moreover on Friday, the 30-share benchmark closed at 537.29 points or 1.44%, higher at 37,930.77.