Ambitious targets were tactfully set by BJP to ward off complacency among the BJP and NDA cadre; it had become a talking point in the absence of the strong wave, as seen in 2014 and 2019: JM Financial
Puneet Wadhwa New Delhi
“Ambitious targets were tactfully set by the BJP to ward off complacency among the BJP and NDA cadre; moreover, it has become a talking point in the absence of the strong wave, as seen in 2014 and to some extent in 2019 as well,” wrote analysts at JM Financial in a recent note.
How will the markets react to NDA loss?
If the BJP gets less than 240 seats and the NDA falls short of 270, funds will be diverted out of infra projects towards social initiatives. Private sector will be pushed to participate in infra, which will lead to only the most viable projects emerging as others are shelved. Heavy profit booking near term. Low or negligible returns for markets this year. (Bernstein)
A BJP loss will be our ‘bear case’ scenario for the markets. The Sensex had lost over 17 per cent in two days. A similar outcome (a surprise loss) can see worse show for the markets when compared to 2004. (Jefferies)
How will the markets react to a hung Parliament?
How will the markets react if the I.N.D.I.A bloc wins?
A change in government as newly formed coalition INDIA gets the majority (>272 seats), could trigger significant market uncertainty with the potential for more abrupt policy changes. We see high risks of reversal of some reforms implemented by the NDA. Financial markets could potentially see a sharp knee-jerk reaction due the uncertainty that comes along with a change in government. (UBS)
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