Sensex before and after the elections

farhaanp5

farhaanp5

Farhaan Panagar
Well the elections are over and first time in the history of the Sensex it hit upper circuit and the market had to be closed down for the day. So do you think the elections have a profound impact on the Sensex or was it bound to happen?? Do you think that the market will continue to rise??
 
After ages, there has been an election where one party has emerged as a clear winner.

Market moves on 3 basic aspects.

1.) fundamentals,

2.) Market sentiment and

3.) liquidity.

Knowing that there will be a stable government, popularly known for its reforms for the poor has given a boost to market sentiment and brought a lot of liquidity.

It is said that markets react speculating future and there is speculation of global economic recovery by the end of 2009. Speculation of fundamentals improving is another reason for the market to improve.

So to answer your question in short, markets in India are dependent on sentiments which are so far so good :)
 
i don't think, there was fundamental support to what happened........it should come down by 2000-3000 points...and much more depends on how this government proceeds......though congress is the largest party.,the way other parties are bargaining now, we cant say that its a one party government...its another alliance...so we will have to watch out........
 
it wont come down by 2000 - 3000 points thats too much. kartik is right the market is driven by sentiments. it all depends on the government. the profile it gives to ministers is also a crucial thing that will regulate the market. the budget is to be watched for too.
 
i agree with farhaan... the market is surely driven by sentiment... but then, in such slowdown, even an absence of any bad news is also a good news... and hence the sharp rise in sensex... it has fallen by 2.31% today and is presently standing at 13,736.54... it might come down to 13K or so... but will definitely stay above 12K...
 
congress winning the election and specially no participation of Left in the government has brought a good impact on the market. This was only the first phase.
now the market growth will depend on the cabinet ministers selected by the PM. As we know, there will be many young ministers in the ministry the market will grow in a positive trend (this is my prediction ) in this month.
specially there will a boom in the retail industry and telecom industry because investment by FDI can increase in the future (because india have a stable govt n national level ruling party)


:SugarwareZ-031:
 
Latest news is that Pranab Mukherjee will be made the Finance minister. How do you think the market will be affected by this? He has little experience in handling this post. I personally feel that the market may go down a little. Investors will be put off if this happens.
 
Well ....markets that fell hard wen UPA govt came into power the previous time.......rose....like never before wen the same govt came into power this time.
 
It has always been said that fundamental drives the market but it's not true. Fundamentally nothing has changed... economic conditions which were present before election but was not properly disclosed due to election, are still the way they were... Infact now that the UPA govt knows that they have 5 years without support of Left Parties, they may come up with some reforms but before that they have to disclose the real picture which may not be as good as expected... coming to market... price of any script should be repilica of firm's fundamental story but in stock market..price of any script is driven by news and technical levels... manipulation is the big word that exist in stock market... Now let's wait for the budget which will decide the next big direction of sensex.
 
i think sensex is better than sex and sex is better than masturbation. and if all of u are wondering wht this bullshit mean? then its just t o complete the mandatory one post to get a fkin project hiuhu haha
 
clearly their is a steep rise in the sensex after the elections due to the promises given by new finance minster to reduce the bank interest rate and tax rates..... by which ivestors are pouring in their money again hope the fdi reserve also increases
 
i think sensex will cool off post in the last week of june just before the budget session by around 500-600 points then depending on the budget again come up by 600-800 points which will not last for long as the fii will not put in money that easily..
 
farhaanp5 said:
Well the elections are over and first time in the history of the Sensex it hit upper circuit and the market had to be closed down for the day. So do you think the elections have a profound impact on the Sensex or was it bound to happen?? Do you think that the market will continue to rise??
Click to expand...

The sensex , stock markets are bound to rise and fall. A number of factors affect it. Elections could be a factor since it depends on which party that wins can produce desired effect for the people.
 
Well Indians are emotional, and the sensex as expected was bound to increase leaps and bounds. For a clear vision, it has already shot up 200% to what it was pre elections. Kudos to a stable government, but I only have a fear of price rise which amounts in our pockets.
 
....markets that fell hard wen UPA govt came into power the previous time.......rose....like never before wen the same govt came into power this timeThe markets have been having the typical pre-poll hesitancy. However, there is a conviction that whichever party or group comes to power, there cannot be a reversal of the reform process. To that extent, the markets have not been unduly influenced by the elections. We do not foresee any major change in the market behaviour after the elections.

As the economy has just completed a very satisfying year and is poised for further growth, the new government will not be facing any immediate pressures on the economic front. However, expectations have been built up for taking the reform process to the next stage. Regional disparities in development and income disparities need to be addressed. The disinvestment process will need to be carried forward.

A hung parliament could impact the market as it will heighten the political uncertainties.the market would look for concrete steps in reforms from the party in power, which in turn would have positive impact on the market However as corporate performances continue to be excellent and fundamentally the markets are on a sound footing, the impact is not expected to be severe. But it could retard the reforms process a bit. In such volatile market conditions, it will be difficult to give a number to the Sensex by June 2004. We are, however, having a positive attitude on the market and we expect and upward direction to the stock markets in the coming months, driven by a strong economy and increased FII inflows.
 
I am surprised the rally is continuing despite there being no change in fundamentals either in Indian economy or the US/Other major economies. How long the rally will be sustainable without visible improvement in the economy as such?
 
After ages, there has been an election where one party has emerged as a clear winner.

Market moves on 3 basic aspects.

1.) fundamentals,

2.) Market sentiment and

3.) liquidity.

Knowing that there will be a stable government, popularly known for its reforms for the poor has given a boost to market sentiment and brought a lot of liquidity.

It is said that markets react speculating future and there is speculation of global economic recovery by the end of 2009. Speculation of fundamentals improving is another reason for the market to improve.

So to answer your question in short, markets in India are dependent on sentiments which are so far so good:SugarwareZ-189:
 
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