Sensex, Nifty To Rise 5% If Modi-Led BJP Wins Bihar Election: Analyst
Ambit Capital CEO Saurabh Mukherjea predicts if BJP winds the Bihar Assembly Elections the Sensex and Nifty may rise by about two to five percent.
He said it is reasonably clear that victory of Modi-led BJP will see stock market going up by up to 5 percent as this will free up the bandwidth of the government to re-focus on the governance of India. Between the result day of November 8 and the beginning of winter session the government to get 3-4 week period for some interesting developments in the policy front as well as the cabinet reshuffle, which can see 3-4 technocrats joining the to boost up the market.
If Bihar election does not turn up in favor of BJP, it depends on Prime Minister Narendra Modi how he positions the defeat. Also, with the defeat of BJP the markets may come down too a bit. However, this may again go up depending on how Modi positions the defeat and comes out with policies for much faster progress on the economic reform front.
Though the Bihar election result will not have much impact in long run on the markets and investors will react favourable to the government.
Not to forget, the West Bengal assembly elections are coming up in 2016.