Impact of General elections on Indian Stock Market

1. All eyes are now set on the general elections in India which will show further direction to the market. However do not keep much hope that some magic will be created as Indian markets will still look up to the global markets for its direction.

2. Excerpts of the views of leading brokerage houses regarding the impact of general elections is as appended below:
(a) Geojit Financial Services is of the view that markets would react positively after the elections provided a single party majority or a strong coalition forming the government.
(b) HSBC is of the view that if an alliance led by either Congress or BJP comes to power; than market will witness rally and considers it bad for India if Left parties or a third front government or a hung Parliament comes to power.
(c) Morgan Stanley is of the view that a stronger coalition government could improve the growth outlook with acceleration in the pace of structural reforms such as privatisation and infrastructure investments and thus it will pave the way for upmove in Indian stock market.
3. Our research team is of the view that it will be in the best interests of the nation if Congress comes to power as still some think tanks in Congress are doing some good for the country. BJP is seeing power hungry LK Advani storming the web world with all sort of advt stating that he is the boldest contender among all Primeministers least realising that war is no solution and at the end of the day all these problems have to be solved through dialogue. LK Advani has totally sidelined Atal Bihari Vajpayee. Thus as conscious citizens of the nation vote with a clear mind and without any pressure. One thing is for sure is that Congress govt is definitely better for the service class. We are not endorsing Congress or acting as its mouth piece and people are free to exercise their fundamental right to make "India as a force to reckon with"; so that world wide we as a nation are saluted.