Stock markets likely to cheer BJP's stunning victories in UP, Uttarakhand

Experts have claimed that stock markets are expected to cheer the massive victory of BJP in UP polls and may reach new heights regarding hopes of further economic reforms.

            Although markets will remain shut on Monday for Holi, a

strong market rally is expected in coming days.

            "Markets are expected to break into a new zone with the

BJP achieving a landslide victory in Uttar Pradesh and

Uttarakhand. This win will help Prime Minister Modi more say

in the Rajya Sabha and will take forward economic reforms,"

said Vijay Singhania, Founder-Director, Trade Smart Online.

            "The election outcome in UP, the most populous state in

the country, is being dubbed as the semi-final to the 2019

general elections. The win has the potential to boost the

Modi-led NDA strength and could have a bearing on the

Presidential elections later this year," Singhania added.

            "The poll results will strengthen government's resolve to

reform the economy and continue its tirade against black money.

International investor confidence in the India story should

strengthen further. The markets should react positively in the

near term paving the way for a new all-time high on the

Sensex," said K Sandeep Nayak - ED and CEO at Centrum Broking.

            "BJP's emphatic victory in the politically-crucial state

of UP would embolden the Prime Minister in aggressively

expediting key structural economic reforms that have been

hobbling India's growth impulses," said Ajay Bodke, CEO &

Chief Portfolio Manager - PMS, Prabhudas Lilladher.

            Equity market would be rejoiced with this outcome and

scale a new high ably supported by a torrent of domestic

liquidity, he added.

            "Such massive support to BJP shall further accelerate the

reforms process and in turn bring in all round prosperity,"

said Jimmet Modi, CEO, Samco Securities.

            "Overall, we foresee market benchmark indices making new

high in this week after the big bang victory of the Modi

government," said Abnish Kumar Sudhanshu, Director & Research

Head, Amrapali Aadya Trading & Investments.

            Moreover, inflation data for February on Tuesday will also

influence trading sentiment.

            On global front, the US Federal Reserve is schedule to

announce its next interest rate decision on Wednesday and any

move to hike interest rates by the Fed will impact the

emerging markets, including India, Singhania said.

            "The Federal Reserve meeting in US would provide some

direction to the markets this week," said Rakesh Tarway, Head

of Research, Reliance Securities.

            "Election results are likely to under deliver in terms of

positive surprise as expectations for the final seat share is

not much off from what the markets were pricing in on Friday.

...a knee-jerk upside on Tuesday cannot be ruled out but it's

sustainability purely based on the verdict is doubtful

especially with a flurry of central banks, including FOMC's,

rate decision," said Anand James - Chief Technical Officer at

Geojit Financial Services.

            "However, market is more forward looking now and weighing

in the prospects of a good Q4 given the rebound following

demonetisation," he added.

            In terms of weekly performance, the Sensex advanced by

113.78 points, or 0.39 per cent, and the Nifty 37 points, or

0.41 per cent.