New Delhi, May 30 (IANS) With the high-octane campaigning coming to an end for the last and seventh phase of the Lok Sabha elections on Thursday, the message from the global market investors is clear — if Prime Minister Narendra Modi returns to power, the Indian stock market will remain strong and economic growth will touch new highs.
From ace investor Mark Mobius to Jim Rogers, PM Modi’s return to power for the third term will ensure the continuation of the government’s robust policies across the economic spectrum.
According to Mobius, if PM Modi gets more than 400 seats, then “we will see another big push in India for big changes taking place, particularly in the infrastructure area”.
Mobius showed his interest in infrastructure-related stocks, saying infrastructure is going to see a “good push” going forward.
On the other hand, Rogers said that PM Modi has put in place several initiatives which are beneficial to the economy.
If PM Modi secures victory, “I expect the Indian stock market to remain strong,” he was quoted as saying in reports.
“If the Indian stock market goes down a lot then I would change my strategy and start investing in India again,” he added.
On Wednesday, top global brokerage S&P Global upgraded India’s outlook to positive from stable, called a ‘good omen’ for the economy by Finance Minister Nirmala Sitharaman.
According to FM Sitharaman, the rating revision is a validation of India’s robust growth and promising economic outlook.
Meanwhile, the Indian stock markets went through a bit of volatility since the start of the first phase of polls – a norm seen in previous polls too.
Sensex largely remained in the 73,000-75,000 zone while Nifty hovered between the 22,000-23,000 levels since April 19 when the polls commenced.
Market experts said on Thursday that ahead of the general election results on June 4, foreign institutional investors (FIIs) and individual traders are net long on index futures.
“It shows that there is a high possibility that the NDA will succeed,” said Vaibhav Vidwani, Research Analyst, Bonanza Portfolio.
Additionally, profit booking is evident in the current market as investors seek to protect themselves against unexpected losses in this highly volatile market, Vidwani noted.
–IANS
na/pgh
