Indian shares are expected to a rally on Monday after exit polls of the 2019 Lok Sabha elections projected Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA)
to win a comfortable majority. Analysts said the equity market has already priced in Narendra Modi's win, however, the exit poll numbers will further boost Indian benchmark indices BSE Sensex and NSE's Nifty 50.
A News18-Ipsos exit poll has predicted NDA winning 336 out of 542 seats, with BJP gaining 276 seats and allies seen taking 66 seats. Congress-led United Progressive Alliance is likely to win 82 seats, with the grand old party taking 46 seats and the rest of 36 to allies.
Other parties, including the mahagathbandhan of Samajwadi Party and Bahujan Samaj Party, are expected to win 124 seats. The poll showed 10 seats to SP, 7 to BSP and Mamata Banerjee's Trinamool Congress winning 38 seats.
In 2014, The BJP-led NDA won 336 seats with the saffron party sweeping all seats in Gujarat, Rajasthan, Delhi, Uttarakhand, Himachal Pradesh and Goa. Moreover, it won 71 out of 80 seats in Uttar Pradesh.
On Friday, the Sensex surged 537.29 points, or 1.44 percent, to 37,930.77, and the Nifty 50 rallied 150.05 points, or 1.33 percent, to 11,407.15. For the week, the Sensex rose 467.78 points, or 1.24 percent, and the Nifty gained 128.25 points, or 1.13 percent.
"This week is going to be the most happening of the year wherein all eyes would be glued to not 'stock quotes' but 'vote quotes'," said Jimeet Modi, founder and CEO, SAMCO Securities & StockNote.
Ajay Srivastava, CEO of Dimensions Corporate Finance Services, said, "This result will definitely give a pop-up tomorrow morning because nobody is expecting this kind of result. So, you will see some upside coming through. This upside you will see again tomorrow will come mainly in the larger companies."
Vikas Khemani, founder, Carnelian Capital Advisors said, "In the last couple of days narrative was getting built that BJP might not get a decent number and because of that there was bit of worry which was getting built and hence market had been correcting a little bit. However, the exit poll puts that worry behind. Markets definitely like continuity and strength of the government. If this exit poll were to be the results, it will give comfort to the market that government is back."
Dipan Mehta, director, Elixir Equities said, "We will be knocking at all-time highs for the Nifty pretty soon, but more importantly, the action is going to be in the midcaps stocks and be prepared for some fabulously movements in the beaten down stocks."Ananth Narayan, professor, SPJIMR said, "There will be relief across all asset classes that we are probably going to get a stable government. The one thing which everybody was worried about was a
khichdi government with no real line of sight and may be possibility of elections coming in in the next two years. At least until Thursday or so that couldn't be ruled out, now that not being there is a great sense of relief."