Assembly election results market to celebrate this victory on big bang note

Market Report by Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments

Bjp lahar to be continued...

As we know, Benchmark indices witnessed lacklustre week ahead of UP assembly election results. Finally the much talked & awaited event results are out. Going against the majority expectation of BJP making government in association with others, Bjp landslide victory is in front of us which is capable of make government on its own. Modi captured majority seats in Uttar Pradesh, leaving behind ruling parties. Despite of market trading at high, we expect market to celebrate this victory on big bang note.

Market participants are likely to take this as BJP cleared its prelims with destination in 2019 election, which is like BJP again coming in the center. Reason why market might celebrate this victory is that more Promised govt. could run the state better along with expectation of clearing all the stalled projects to receive synergy.

Further also, better than expected macro economic data i.e. IIP stood better than anticipated, is also likely to add flavour in the really. Inflation data too is expected to release on Tuesday, which may showcase inch up, however we don't see any pressure on the back of that. Another important factor to look in the week would be US fed meeting regarding interest rate hike. Though, we know that jenet yellen has already ruled out interest rate hike in this month, but we would like to see her tone for the coming months hike.

Overall, we foresee market benchmark indices making new high in this week after the big bang victory of modi govt, which showcase modi waves are still there and likely to continue in future. We advise investors to invest in Infrastructure and finance companies.

Source : Equity Bulls

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