Market Watchers Expect Calm After Exit Polls As Lok Sabha Election 2024 Concludes

Market participants expect calm after the exit polls, as the 2024 Lok Sabha elections come to an end, with expectations that overseas investors would cautiously approach Indian markets.

Complete Circle's Managing Partner and Chief Investment Officer Gurmeet Chadha highlighted the potential calming effect on markets, and said he expects a resurgence of foreign institutional investors and potential short covering.

Foreign institutions have been net sellers of Rs 23,364 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd. even as Indian equity benchmarks surged to all-time highs, crossing new milestones.

Chadha highlighted the credibility of exit polls, stressing their scientific nature. Dipan Mehta, founder and director of Elixir Equities, concurred, foreseeing a positive market response if the exit poll numbers materialise.

Both predicted a rally in industrial and defence stocks if the BJP secures a strong mandate, while cautioning against potential populist shifts in policy with a lower-than-expected seat tally.

They expect a surge in industrial and defence stocks if the BJP secures a strong mandate, while a lower-than-expected seat tally could indicate a shift towards populism, potentially impacting policy decisions in areas such as labour and judiciary.

With the official election results set to be announced on Tuesday, investors are awaiting the outcome of the election.

Nearly 57.78 crore voters participated in the first six phases of the election, out of around 100 crore eligible electors. The final phase of voting concluded on Saturday, with a voter turnout nearing 60% as of 5 p.m.

A look at the exit polls released so far puts the National Democratic Alliance well ahead of the opposing INDIA bloc. The BJP-led coalition could win 342-392 Lok Sabha seats. Meanwhile, the INDIA bloc is seen as limited to 118-169 seats.