State elections and stock markets - 6 points: Madhya Pradesh result key, Nifty to skyrocket if this party wins
As far as investors are concerned, they have seen a bloodbath yesterday due to exit polls impact, which had thrown up uncertain results, hinting at setbacks for the BJP, especially in Rajasthan. This caused an over 700 point plunge by Sensex. The news got worse in the evening as RBI Governor Urjit Patel quit. This is expected to impact the markets today too in a negative manner.
State election result impact on stock markets: Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana and Mizoram election results are being eagerly awaited. The process of counting of votes is on and this time around the BJP is facing the prospect of a tough fight in the three critical states - MP, Rajasthan and Chhattisgarh. Not just the common public, the investors too are glued to the vote tally as the Election Commission is releasing the data gradually.
As far as investors are concerned, they have seen a bloodbath yesterday due to exit polls impact, which had thrown up uncertain results, hinting at setbacks for the BJP, especially in Rajasthan. This caused an over 700 point plunge by Sensex. The news got worse in the evening as RBI Governor Urjit Patel quit. This is expected to impact the markets today too in a negative manner.
However, what is mostly on investors mind is how the markets will react in the post-poll result situation.
Possible impact of state election results:
• Madhya Pradesh Results will be the most important and key trigger
• If BJP wins all 3 states: Nifty to go back to 10700-10800 levels
• If BJP wins MP and Chhattisgarh: It is positive and Nifty to touch 10500-10600 again
• If Congress wins all 3 states: Nifty to fall by 250-300 points more, 10000-10050 level possible
Watch this Zee Business video
• If Congress wins Rajasthan and Chhattisgarh: Its neutral mandate and Nifty to remain uncertain
• If Congress wins Rajasthan and MP: Its negative and Nifty to touch 10200-10250 range
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