According to the analysts, markets are already pricing in a victory for PM Narendra Modi led NDA in the upcoming Lok Sabha elections.
. They believe that even though they may remain volatile in the run-up to the polls due to the alliances, the long – term trajectory for the markets remains up.
They further believed that oil prices and political uncertainty are the two main reasons behind the Indian bourses underperformed in 2019 and have already hit a peak in a negative term.
According to the analysts, markets are already pricing in a victory for PM Narendra Modi led NDA in the upcoming Lok Sabha elections. They believe that even though they may remain volatile in the run-up to the polls due to the alliances, the long – term trajectory for the markets remains up.
Ridham Desai, head of India research and India equity strategist at Morgan Stanley in a co-authored report with Sheela Rathi stated that the events of the past eight weeks on the political front including various pre-poll formations, the farmer cash transfer scheme and the military action across the border may cause polarisation in the 2019 upcoming general elections and increases the probability of a stronger government.
They further believed that oil prices and political uncertainty are the two main reasons behind the Indian bourses underperformed in 2019 and have already hit a peak in a negative term.