Financial Market:
Sensex fall 5.74%, which is dip dive of 4390 points on big result day, where BJP falls short of majority on his own contrary to exit poll prediction of landslide victory of BJP led NDA. The down trend for few more session likely, as apprehension on aggressive policy making and its execution remain a concern for the market participants.
NIFTY falls nearly 6%, lead by ADANI group stock which are in eye of storm. ADANI enterprises down nearly 20% percent and ADANI port 21%, witnessed heavy selloff as well as short position built up. The fall is massive enough for small investor to get out or cut their position. Long position built up on account of exit poll result get strangled as the Panic button of BJP struggles to get 240 seats on his own.
Going ahead, the market is likely to settle down in 5-6 trading session once Government formation occur followed by ministry allocation and then big budget day. Bull will be again in command on the 1st budget day of new Government as the GST collection on record high, which obviously give enough leg room for the government to make their planned expenditure on ambitious manner.
MY ADVISE FOR THE INVESTOR NOT TO PANIC AND KEEP INVESTING ON QUALITY STOCKS. * YOU CAN ACCUMLATE SBI and RELIANCE AT THIS LEVEL.
Political spectrum:
This verdict certainly showcase vibrant democracy and showcase voter’s intelligence to read the narrative or pitch by political leaders. Arrogance is not going to sustain, while true nature of doing politics is to serve people and established fact that service and arrogance does not fall in line, thus ought to be humbled.
BJP falling short of majority eventually lead to a humbled BJP compared to 2019-2024 BJP. The alliance which had shown their hostile nature in past likely to put a check button on monopoly of BJP, which is good for democracy. Adding to that, the strong opposition is needed for larger accountability of Government, henceforth a caution on top BJP leadership while addressing issues or policy enforcement.
Next to watch out is,TDP chief Chandrababu Naidu’s bargain on ministry so is JDU chief Nitish Kumar’s upcoming demand on power game. Hereinafter the ministry portfolio distribution would be crucial as allies can demand key portfolio and also their bargaining power will be on higher side as opposition also try to put their muscle into the alliance breaking strategy, quite often BJP resorted to and it’s time to pay back period perhaps.
