Gujarat Election Suggests Indian Market Wants BJP’s Modi in 2019

Sensex saw 1166.41 points swing the whole day as election results of Gujarat and Himachal Pradesh came out. Sensex indicated an upset as BJP saw initial loss during the Gujarat election vote count this morning.

Despite a Depressing start Sensex Celebrates Gujarat Election Victory

Today, Gujarat and Himachal Pradesh election results came out today marking a decent victory for the incumbent Bhartiya Janta Party. The BJP won Gujarat for the record sixth time since 1995. One the other hand BJP defeated the incumbent Congress in Himachal Pradesh marking 44 seats out of 68.

Though the end result came in favor of BJP but the initial start was scary for world’s largest party. The share market saw an 870 point fall in the early morning trading. As the result improved in favor of BJP the share market improved.

The Sensex today opened at 33, 364.52 but fell down to 32, 595.63, a total of 867 points fall was witnessed. Later as the situation improved and it was foreseen that BJP will win both the state elections, Sensex improved and closed at a 138.7 point high at 33, 601.68. On the other hand Nifty gained 55.5 points and closed at 10, 338.75.

Market Readings Indicate that it wants Modi Led BJP win in 2019

The sudden fall of Sensex this morning when BJP was in loosing position reflected that the market has high hopes from this government and doesn’t want the Modi led BJP to loose. One can easily see that the share market wants Modi government to return to power in 2019.

Since 2014, the Sensex has risen nearly to 9000 points. On May 2014, the Sensex was 24, 271.5 which at present is 33, 601.68, a total of 9, 303.18 gain in the last 3.5 years. This present government has taken some strong decisions on economic front and one can expect more as the party has won one more state and retained its bastion Gujarat.

More Reforms Expected

One can expect few more reforms till 2019 as the verdict of this election has showed that people have accepted GST. NPAs, lowering down of interest rates, simple corporate tax structure and some relief in income tax can be expected in times to come.