News Snippets

  • West Bengal governor calls major political parties for a meeting in a bid to stop post-poll violence in the state
  • Police stop BJP protestors from reaching police headquarters in Kolkata leading to clashes
  • PM asks all ministers to reach office by 9.30 am. Also asks senior ministers to guide new comers
  • NIA raids seven places in Coimbatore over suspected IS module
  • UP Bar Council chief, elected just three days back, shot dead on Agra district court premises
  • Isro to launch Chandrayaan-2 on July 15
  • The NRS hospital incident snowballs into a major crisis in West Bengal, affecting delivery of healthcare across the state
  • India play New Zealand in the World Cup today. Both teams are the only unbeaten teams left in the tournament
  • Congress thinking of having an interim president as the headless party is being torn apart
  • Temperatures in Delhi soar up to 48 degrees, the highest on over 20 years
  • Yuvraj Singh announces retirement from international cricket
  • SC to hear plea of the wife of journalist Prashant Kanojia, who was arrested for an alleged defamatory post on UP CM Yogi Adityanath
  • Modi asks all secretaries in the government to think of themselves as the PM while implementing strategies
  • WB governor KN Tripathi says he has not submitted a report that calls for the dismissal of the state government
  • Mamata Banerjee compares herself to a wounded tigress and warns the BJP against dislodging her government over post-poll clashes
Agitating doctors refuse to hold closed-door meeting with West Bengal CM Mamata Banerjee. They ask her to visit NRS Hospital instead for an open meeting
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How Will The Poll Results Affect The Stock Market?

By Linus Garg

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
The stock markets dropped yesterday after touching record highs on the day exit polls predicted a comfortable majority for the NDA. That day, stocks had shown the highest single day jump in 10 years. But most analysts say that the drop yesterday was on account of profit taking and is not a reversal of the uptrend. In fact, they say that if results mirror the exit polls, the Nifty well might breach the 12000 level or even inch close to 12500.

To support their theory, analysts point out to the open interest being shown by traders at 12000 and even 12500 levels. They say that since no trades are being squared up for these levels – in fact, trades are being added – it is clear that the market is going to move upwards and touch dizzying heights. Only a complete reversal of the trends shown in the exit polls will cause a crash in the market. Analysts feel that given that most exit polls show a similar trend of majority for NDA, such a scenario is unlikely.

But what should a small trader do in such a scenario? The markets are already at very high levels. One feels that apart from a small rally, the markets have already taken in the fact that the NDA will return again ensuring policy continuity. But exit polls have gone wrong in the past. A small trader is more likely to burn his fingers at these levels if he or she does not do his homework properly. The chances of making money in the short term are decidedly low. Hence, small traders will find it better not to invest until a clearer trend emerges.