The Hindu Business Line : Poll forecast lifts Sensex by 71 points

FINANCIAL markets seem to be moving in tandem with the exit poll forecasts. Notwithstanding the fall of 213 points after the second phase of Lok Sabha elections, the Sensex today gained 71 points as exit polls, after the third phase, indicated a majority for the National Democratic Alliance (NDA). The rupee and bond prices also reacted positively to the poll outlook.

Brokers said if elected to power the NDA Government would step up economic reforms and the disinvestment process. Moreover, they said the present government has brought various stock market-friendly policies in the last few years.

Other than the outcome of the exit polls, the good financial performance by most of the companies for March quarter has also boosted market sentiment.

At close, BSE Sensex gained 71.11 points (1.25 per cent) at 5757.30 and on NSE S&P CNX Nifty closed at 1833.10, up 23.21 points (1.27 per cent).

Today was the day of commodity and metal shares all of which surged on renewed buying interest. Commodity stocks across sectors like cement, steel, aluminium, paper and steel also surged. Shares of public sector banks also rallied. Shares of heavyweights on the Sensex gained as well further boosting the barometer.

At close the mood in the market was bullish and brokers said stock prices are likely to move in narrow range till the final phase of election on May 10. "Next movement would be depend first on the exit polls and then on the final result," said a dealer with a domestic broking firm.

He said even if the next phase indicates a situation of hung Parliament, the stock prices may not fall drastically as the performance of most of the companies are likely to be good in the current fiscal also.

Meanwhile, the domestic currency closed at 44.64/67 per dollar on Thursday, 3 paise stronger as against the closing on Wednesday at 44.70.

Dealers said the rupee was riding high on positive sentiment as a result of the latest exit polls, suggesting that the NDA might win with a majority.

"The rupee's fall in the last couple of days has been partly on account of apprehensions that there might be a hung Parliament which means that the government that comes to power might find it difficult to take tough decisions," according to Mr R.V.S. Sridhar, Vice-President and chief dealer money and forex, UTI Bank.

There are concerns on weather the reforms process will go forward and whether international investments will continue to flow into the country . The rupee is likely to continue its two-way movement until May 10.

More Stories on : Politics | Stock Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SC seeks ad revenue details from Ten Sports

Centre moves SC on company law tribunal

Dr Reddy's buys US skincare co Trigenesis

Wockhardt acquires German firm Esparma

Poll forecast lifts Sensex by 71 points

FM radio cos fail to pay licence fees

TCS public offer by June-end?