EquityPandit.com expects Indian stock market to see sharp uptrend on Monday because of the clear election victory of the ruling coalition would lead to a strong and stable government that would accelerate the pace of economic reform.
The rupee is expected to strengthen past 49 per dollar and bond yields are set to fall as the outcome should be encourage foreign investors and sharply lowers the risk of instability leading to a ratings downgrade.
Prime Minister Manmohan Singh’s coalition was heading for a second term after a clear victory in the general election.
EquityPandit.com expects Sensex to see some uptrend of 1000-1200 points or above, over the next 3 days.
Such a jump would see the benchmark stock index rising about 9 to 11 percent towards 13,500-14000 in the first half of next week; it’s highest since last September.
Analysts said the fact Congress would not have to rely on parties such as the Left for support meant it would be easier to push through economic reforms to pull up flagging growth.
Strong global liquidity and a stable government would boost the stock market, and said the ruling coalition’s victory would be positive for the Infrastructure, banking, insurance, capital goods, retail, real estate and the telecom sector.
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