Views of Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Broking):
"BJP's massive victory in the major state election has created good sentiments in the Indian market leading to appreciating rupee and higher equities. The USDINR pair is trading close to one year highs as the party and its coalition partners won 325 seats against 403 seats in member assembly of Uttar Pradesh thereby increasing the chances of Modi's win in general elections of 2019. This encroachment will help BJP to push reform agenda in the upper house of parliament, where the party currently has a minority. Both Sensex and Nifty are also trading in green.
This positivity comes despite the looming threat of US rate hike which is scheduled to be held on 14-15th March 2017. The odds of US Federal Reserve increasing interest rates have surged beyond 80 percent. Rupee will continue to appreciate towards 65.80 in the near term."