ELECTION RESULT: EFFECT ON THE STOCK MARKET

By Abhinandan Tulsian with inputs from Research Desk

We have all been speculating on the various permutations and combinations, of effect of expected seats to be won by the BJP / NDA on the stock market.

We have tried to summarise all the probabilities of the expected 2014 Election outcome and its effect on the stock market.

• Congress is unlikely to win more than 75 seats.
• TMC led by Mamata Banerjee is likely to get 29 seats.
• AIADMK led by Jayalalithaa is likely to get 19 seats.
• BSP led by Mayawati is likely to get 13 seats.
• SP led by Mulayam Singh is likely to get 12 seats.
• RJD led by Lalu Yadav is likely to get 11 seats.
• BJD led by Navin Patnaik is likely to get 11 seats.
• Jagan Reddy is likely to get 10 seats in Seemandhra.
• TRS led by Chandrasekhar Rao is likely to get 9 seats.
• DMK led by Karunanidhi is likely to get 8 seats.
• NCP led by Sharad Pawar may get 4 seats in Maharashtra.
• AAP is likely to get 4 seats, of which, 2 may come from Punjab, 1 from Karnataka and 1 from Union Territory.
• JD (U) led by Sharad Yadav is likely to get 3 seats.
• MNS led by Raj Thackeray may be able to garner 1 seat.

We request the members to read our cover feature of 5^th May 2014 (https://www.sptulsian.com/article/79641), for the State wise break up of seats to be won by NDA.

• NDA constituents viz. Shiv Sena, TDP, Ramvilas Paswan, T. Nadu allies and Akali Dal are likely to get 30 seats in Maharashtra, Seemandhra, Telangana, Bihar, T. Nadu and Punjab.

We have now prepared a table, giving effect on the market, for expected seats to be won by BJP / NDA. The expected Nifty and Sensex in each scenario is likely to be as under:-

So we wish all the best to NDA for a thumping majority, to see Nifty of 8100 and Sensex of 27K, in the best case scenario.