SlideShare a Scribd company logo
1 of 2
Download to read offline
Anxiety grips investors ahead of election verdict
 With counting of votes for the ensuing national elections due May 16, and no party or group seen
emerging clear winner, Indian stock markets are once again edgy, in a repeat of volatile trading
witnessed during the similar situations in the past.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), often described as the
barometer of Indian equities, rose nearly 10 percent in the nine straight weeks ended May 8, to
make it the longest weekly rally since July 24, 2006. But trading has turned volatile thereafter.

There is a distinct sense of disquiet among the investors, because of which the 30-share key index
has been fluctuating wildly in a range of more than 650 points, or over 5 percent, this month.

The only saving grace for the weak-hearted, speculators and analysts maintained, is that May 16,
when the votes will be counted, is a Saturday, when stock markets across the country will remain
shut.

Nothing reflects the fluctuation better than the India Volatility Index of the National Stock Exchange
(NSE).

This index, which measures markets expectations of volatility over the near term, stood at a
whopping 50.73 points May 13. Typically, a level of 25-30 points reflects stability and anything
above 35 points indicates risk.

'The market becomes edgy whenever there is uncertainty,' said Avinash Gupta, assistant vice
president with leading brokerage Bonanza. 'This does not immediately end with the formation of a
government. The agenda of coalition partners also concerns the market,' Gupta told IANS.

Picture this: In October 1999, when the National Democratic Alliance (NDA) returned to power after
a snap poll, the Sensex fell about 7.5 percent primarily on fears that then prime minister Atal Bihari
Vajpayee may not be able to hold the new coalition together. The previous alliance, after all, had
collapsed abruptly.

Then in May 2004, on the eve of the United Progressive Alliance (UPA) taking over the reins, the
key index plummeted 15.7 percent, as investors were rattled that the NDA - which by then was seen
as investor friendly - would not return to power.

'Such high volatility is usually the doing of speculators and hedge funds who do event-based trading
for a fast buck. Uncertain political situation is a chance to capitalise on investor fears,' said
Jagannadham Thunuguntla, equity head at SMC Capitals.

Agreed Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and
Industry (FICCI), who said there was a major difference between how the corporate sector viewed
elections and how the market investor looked at it.

'Corporates look at fundamentals and long-term policy stability, while secondary market players tend
to view the short-term gains or losses. For speculators, even a short-term period of uncertainty can
cause nervousness,' Mitra told IANS.
Page 1/2
© Copyright 2009 IndiaeNews.com. All Rights Reserved.
'Naturally this time, when the Congress says it will be a close call, the Bharatiya Janata Party says it
will be touch-and-go and the Third Front says it will try to form a government of its own, there is that
bit of short-term concern.'

This explains the reason behind the current volatility, where there is no clear signal yet on which
coalition will form the next government, raising questions over stability and continuity in governance
and policies - at least for speculators.

'History suggests that as long as a stable coalition comes to power, the impact on sentiment and
activity is likely to be positive,' said Tushar Poddar, vice president for Asia Economics Research with
leading consultancy Goldman Sachs.

'A lower probability event in our view is that the election outcome is seen as unstable due to a
fractured mandate. Such a result would be negative for policy-making and for markets in the
short-term.'

Echoing similar sentiments, Gupta is more forthright and says the worst fears for the markets is the
Third Front coming to power, with the active backing of Left parties.

'It would jolt the market badly,' he said. 'The Left is expected to hamper reforms.'

James Jose ( © IANS / India eNews)




Page 2/2
© Copyright 2009 IndiaeNews.com. All Rights Reserved.

More Related Content

What's hot

Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...
Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...
Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...Jagannadham Thunuguntla
 
India Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
India Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictIndia Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
India Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Inditop May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Inditop May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictInditop May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Inditop May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Hindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Hindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictHindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Hindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Newstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Newstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictNewstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Newstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Pro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Pro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictPro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Pro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Andhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Andhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictAndhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Andhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Mathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Mathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictMathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Mathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Big News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Big News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictBig News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Big News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Samay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Samay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictSamay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Samay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
AOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
AOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictAOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
AOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
MSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
MSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictMSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
MSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Sindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Sindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictSindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Sindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictJagannadham Thunuguntla
 
Market Wrap Up: 11th February, 2011
Market Wrap Up: 11th February, 2011Market Wrap Up: 11th February, 2011
Market Wrap Up: 11th February, 2011Fullerton Securities
 
Morning tea 29 12-2016
Morning tea 29 12-2016Morning tea 29 12-2016
Morning tea 29 12-2016Choice Equity
 
Sakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 Points
Sakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 PointsSakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 Points
Sakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 PointsJagannadham Thunuguntla
 
MHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan Uncertainty
MHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan UncertaintyMHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan Uncertainty
MHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan UncertaintyJagannadham Thunuguntla
 
SmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
SmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesSmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
SmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesJagannadham Thunuguntla
 
Bharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Bharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertaintyBharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Bharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertaintyJagannadham Thunuguntla
 
Sulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Sulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertaintySulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Sulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertaintyJagannadham Thunuguntla
 

What's hot (20)

Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...
Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...
Blog Coverage Taragana May 15, 2009 Anxiety Grips Investors Ahead Of Election...
 
India Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
India Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictIndia Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
India Forums May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Inditop May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Inditop May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictInditop May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Inditop May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Hindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Hindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictHindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Hindustan Times May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Newstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Newstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictNewstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Newstrack May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Pro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Pro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictPro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Pro Kerala May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Andhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Andhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictAndhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Andhra Cafe May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Mathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Mathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictMathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Mathrubhumi May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Big News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Big News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictBig News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Big News Network May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Samay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Samay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictSamay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Samay Live May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
AOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
AOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictAOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
AOL News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
MSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
MSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictMSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
MSN Mobile News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Sindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Sindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election VerdictSindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
Sindh Today May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict
 
Market Wrap Up: 11th February, 2011
Market Wrap Up: 11th February, 2011Market Wrap Up: 11th February, 2011
Market Wrap Up: 11th February, 2011
 
Morning tea 29 12-2016
Morning tea 29 12-2016Morning tea 29 12-2016
Morning tea 29 12-2016
 
Sakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 Points
Sakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 PointsSakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 Points
Sakal Times Oct 24, 2008 Sensex In Steepest Ever Fall, Sheds 1,070 Points
 
MHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan Uncertainty
MHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan UncertaintyMHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan Uncertainty
MHI News Oct 10, 2008 Markets End In Red On Us Bailout Plan Uncertainty
 
SmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
SmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesSmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
SmasHits Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
 
Bharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Bharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertaintyBharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Bharatsite - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
 
Sulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Sulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertaintySulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
Sulekha - Sept 26, 2008 - Markets end in red on US bailout plan uncertainty
 

Viewers also liked

Viewers also liked (20)

Cs Provinciale Revigliasco 13.05.09
Cs Provinciale Revigliasco 13.05.09Cs Provinciale Revigliasco 13.05.09
Cs Provinciale Revigliasco 13.05.09
 
B&D Clinical Systems High
B&D Clinical Systems HighB&D Clinical Systems High
B&D Clinical Systems High
 
Nagios Conference 2012 - John Murphy - Rational Configuration Design
Nagios Conference 2012 - John Murphy - Rational Configuration DesignNagios Conference 2012 - John Murphy - Rational Configuration Design
Nagios Conference 2012 - John Murphy - Rational Configuration Design
 
afaf
afafafaf
afaf
 
98健美成績
98健美成績98健美成績
98健美成績
 
Timbres BáSicos
Timbres BáSicosTimbres BáSicos
Timbres BáSicos
 
01 25 09 Prayer Sheet
01 25 09 Prayer Sheet01 25 09 Prayer Sheet
01 25 09 Prayer Sheet
 
Rakel
RakelRakel
Rakel
 
Blackberry 2012
Blackberry 2012Blackberry 2012
Blackberry 2012
 
Nagios Conference 2012 - Yancy Ribbens - NPush
Nagios Conference 2012 - Yancy Ribbens - NPushNagios Conference 2012 - Yancy Ribbens - NPush
Nagios Conference 2012 - Yancy Ribbens - NPush
 
Procesadores
ProcesadoresProcesadores
Procesadores
 
Analyse Iii
Analyse IiiAnalyse Iii
Analyse Iii
 
Conrad Partners
Conrad PartnersConrad Partners
Conrad Partners
 
analisis información
analisis informaciónanalisis información
analisis información
 
Site Plan #1
Site Plan #1Site Plan #1
Site Plan #1
 
2009 Local Conference Pastor Report
2009 Local Conference Pastor Report2009 Local Conference Pastor Report
2009 Local Conference Pastor Report
 
Analyse V
Analyse VAnalyse V
Analyse V
 
TYVM (Trailblazers 2012)
TYVM (Trailblazers 2012)TYVM (Trailblazers 2012)
TYVM (Trailblazers 2012)
 
Song
SongSong
Song
 
Realisme
RealismeRealisme
Realisme
 

Similar to India E News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict

India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...
India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...
India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...Jagannadham Thunuguntla
 
Bombay News May 17, 2009 Markets Expected To Soar Monday On UPA Win
Bombay News May 17, 2009 Markets Expected To Soar Monday On UPA WinBombay News May 17, 2009 Markets Expected To Soar Monday On UPA Win
Bombay News May 17, 2009 Markets Expected To Soar Monday On UPA WinJagannadham Thunuguntla
 
Manglorean May 17, 2009 Markets Expected To Soar Monday On UPA Win
Manglorean May 17, 2009 Markets Expected To Soar Monday On UPA WinManglorean May 17, 2009 Markets Expected To Soar Monday On UPA Win
Manglorean May 17, 2009 Markets Expected To Soar Monday On UPA WinJagannadham Thunuguntla
 
Calcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Calcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesCalcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Calcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesJagannadham Thunuguntla
 
Bombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Bombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesBombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Bombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesJagannadham Thunuguntla
 
India Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
India Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesIndia Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
India Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesJagannadham Thunuguntla
 
Lok sabha election 2014 prediction
Lok sabha election 2014 predictionLok sabha election 2014 prediction
Lok sabha election 2014 predictionshilpaverm
 
Narendra Modi The Choice of Digital India
Narendra Modi The Choice of Digital IndiaNarendra Modi The Choice of Digital India
Narendra Modi The Choice of Digital Indiaforeseegame
 
June 2016 Cover Letter RJTL - Final
June 2016 Cover Letter RJTL - FinalJune 2016 Cover Letter RJTL - Final
June 2016 Cover Letter RJTL - FinalRichard Lerch
 
Two Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Two Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesTwo Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Two Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesJagannadham Thunuguntla
 
Thaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Thaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesThaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Thaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesJagannadham Thunuguntla
 
The Maharashtra Pilot
The Maharashtra PilotThe Maharashtra Pilot
The Maharashtra PilotSahil Singh
 
Nerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Nerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesNerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Nerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesJagannadham Thunuguntla
 
Impact of election 2014 on indian stock market
 Impact of election 2014 on indian stock market Impact of election 2014 on indian stock market
Impact of election 2014 on indian stock marketsnehastocktips
 
SME Times Oct 24, 2008 Markets See Steepest Ever Falls
SME Times Oct 24, 2008 Markets See Steepest Ever FallsSME Times Oct 24, 2008 Markets See Steepest Ever Falls
SME Times Oct 24, 2008 Markets See Steepest Ever FallsJagannadham Thunuguntla
 

Similar to India E News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict (16)

India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...
India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...
India PR Wire May 16, 2009 Indian Markets Expected To Rejoice Surprise Electo...
 
Bombay News May 17, 2009 Markets Expected To Soar Monday On UPA Win
Bombay News May 17, 2009 Markets Expected To Soar Monday On UPA WinBombay News May 17, 2009 Markets Expected To Soar Monday On UPA Win
Bombay News May 17, 2009 Markets Expected To Soar Monday On UPA Win
 
Manglorean May 17, 2009 Markets Expected To Soar Monday On UPA Win
Manglorean May 17, 2009 Markets Expected To Soar Monday On UPA WinManglorean May 17, 2009 Markets Expected To Soar Monday On UPA Win
Manglorean May 17, 2009 Markets Expected To Soar Monday On UPA Win
 
Indian Elections 2014
Indian Elections 2014Indian Elections 2014
Indian Elections 2014
 
Calcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Calcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesCalcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Calcutta News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
 
Bombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Bombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesBombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Bombay News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
 
India Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
India Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesIndia Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
India Gazette Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
 
Lok sabha election 2014 prediction
Lok sabha election 2014 predictionLok sabha election 2014 prediction
Lok sabha election 2014 prediction
 
Narendra Modi The Choice of Digital India
Narendra Modi The Choice of Digital IndiaNarendra Modi The Choice of Digital India
Narendra Modi The Choice of Digital India
 
June 2016 Cover Letter RJTL - Final
June 2016 Cover Letter RJTL - FinalJune 2016 Cover Letter RJTL - Final
June 2016 Cover Letter RJTL - Final
 
Two Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Two Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesTwo Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Two Circles Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
 
Thaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Thaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesThaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Thaindian Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
 
The Maharashtra Pilot
The Maharashtra PilotThe Maharashtra Pilot
The Maharashtra Pilot
 
Nerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Nerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever LossesNerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
Nerve News Oct 24, 2008 Indian Equities Markets Suffer Worst Ever Losses
 
Impact of election 2014 on indian stock market
 Impact of election 2014 on indian stock market Impact of election 2014 on indian stock market
Impact of election 2014 on indian stock market
 
SME Times Oct 24, 2008 Markets See Steepest Ever Falls
SME Times Oct 24, 2008 Markets See Steepest Ever FallsSME Times Oct 24, 2008 Markets See Steepest Ever Falls
SME Times Oct 24, 2008 Markets See Steepest Ever Falls
 

More from Jagannadham Thunuguntla

Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013Jagannadham Thunuguntla
 
Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013Jagannadham Thunuguntla
 

More from Jagannadham Thunuguntla (20)

Financial chronicle 10.05.2014
Financial chronicle 10.05.2014Financial chronicle 10.05.2014
Financial chronicle 10.05.2014
 
The indian express
The indian expressThe indian express
The indian express
 
The financial express
The financial expressThe financial express
The financial express
 
The hindu business line
The hindu business lineThe hindu business line
The hindu business line
 
The asian age
The asian ageThe asian age
The asian age
 
Economic times 28.03.14.
Economic times   28.03.14.Economic times   28.03.14.
Economic times 28.03.14.
 
Economic times 26.03.14.
Economic times   26.03.14.Economic times   26.03.14.
Economic times 26.03.14.
 
Economic times 25.03.14.
Economic times   25.03.14.Economic times   25.03.14.
Economic times 25.03.14.
 
Financial chronicle 03.02.2014
Financial chronicle   03.02.2014Financial chronicle   03.02.2014
Financial chronicle 03.02.2014
 
Business standards 03.02.2014
Business standards   03.02.2014Business standards   03.02.2014
Business standards 03.02.2014
 
Financial chronicle - 31.01.201
Financial chronicle - 31.01.201Financial chronicle - 31.01.201
Financial chronicle - 31.01.201
 
The financial express 07.01.14.
The financial express   07.01.14.The financial express   07.01.14.
The financial express 07.01.14.
 
The business standard 07.01.14.
The business standard   07.01.14.The business standard   07.01.14.
The business standard 07.01.14.
 
Financial chronicle 7.01.14.
Financial chronicle   7.01.14.Financial chronicle   7.01.14.
Financial chronicle 7.01.14.
 
Business Standard 24.12.13
Business Standard 24.12.13Business Standard 24.12.13
Business Standard 24.12.13
 
The Hindu business
The Hindu businessThe Hindu business
The Hindu business
 
Hindu 17.12.13
Hindu 17.12.13Hindu 17.12.13
Hindu 17.12.13
 
Hindu 17.12.2013
Hindu 17.12.2013Hindu 17.12.2013
Hindu 17.12.2013
 
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
Infra cos pay over $1 billion in finance, interest costs in H1 - 25.11.2013
 
Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013Initial offers fail investors- 25.11.2013
Initial offers fail investors- 25.11.2013
 

India E News May 15, 2009 Anxiety Grips Investors Ahead Of Election Verdict

  • 1. Anxiety grips investors ahead of election verdict With counting of votes for the ensuing national elections due May 16, and no party or group seen emerging clear winner, Indian stock markets are once again edgy, in a repeat of volatile trading witnessed during the similar situations in the past. The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), often described as the barometer of Indian equities, rose nearly 10 percent in the nine straight weeks ended May 8, to make it the longest weekly rally since July 24, 2006. But trading has turned volatile thereafter. There is a distinct sense of disquiet among the investors, because of which the 30-share key index has been fluctuating wildly in a range of more than 650 points, or over 5 percent, this month. The only saving grace for the weak-hearted, speculators and analysts maintained, is that May 16, when the votes will be counted, is a Saturday, when stock markets across the country will remain shut. Nothing reflects the fluctuation better than the India Volatility Index of the National Stock Exchange (NSE). This index, which measures markets expectations of volatility over the near term, stood at a whopping 50.73 points May 13. Typically, a level of 25-30 points reflects stability and anything above 35 points indicates risk. 'The market becomes edgy whenever there is uncertainty,' said Avinash Gupta, assistant vice president with leading brokerage Bonanza. 'This does not immediately end with the formation of a government. The agenda of coalition partners also concerns the market,' Gupta told IANS. Picture this: In October 1999, when the National Democratic Alliance (NDA) returned to power after a snap poll, the Sensex fell about 7.5 percent primarily on fears that then prime minister Atal Bihari Vajpayee may not be able to hold the new coalition together. The previous alliance, after all, had collapsed abruptly. Then in May 2004, on the eve of the United Progressive Alliance (UPA) taking over the reins, the key index plummeted 15.7 percent, as investors were rattled that the NDA - which by then was seen as investor friendly - would not return to power. 'Such high volatility is usually the doing of speculators and hedge funds who do event-based trading for a fast buck. Uncertain political situation is a chance to capitalise on investor fears,' said Jagannadham Thunuguntla, equity head at SMC Capitals. Agreed Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry (FICCI), who said there was a major difference between how the corporate sector viewed elections and how the market investor looked at it. 'Corporates look at fundamentals and long-term policy stability, while secondary market players tend to view the short-term gains or losses. For speculators, even a short-term period of uncertainty can cause nervousness,' Mitra told IANS. Page 1/2 © Copyright 2009 IndiaeNews.com. All Rights Reserved.
  • 2. 'Naturally this time, when the Congress says it will be a close call, the Bharatiya Janata Party says it will be touch-and-go and the Third Front says it will try to form a government of its own, there is that bit of short-term concern.' This explains the reason behind the current volatility, where there is no clear signal yet on which coalition will form the next government, raising questions over stability and continuity in governance and policies - at least for speculators. 'History suggests that as long as a stable coalition comes to power, the impact on sentiment and activity is likely to be positive,' said Tushar Poddar, vice president for Asia Economics Research with leading consultancy Goldman Sachs. 'A lower probability event in our view is that the election outcome is seen as unstable due to a fractured mandate. Such a result would be negative for policy-making and for markets in the short-term.' Echoing similar sentiments, Gupta is more forthright and says the worst fears for the markets is the Third Front coming to power, with the active backing of Left parties. 'It would jolt the market badly,' he said. 'The Left is expected to hamper reforms.' James Jose ( © IANS / India eNews) Page 2/2 © Copyright 2009 IndiaeNews.com. All Rights Reserved.