Experts are of the opinion that the outcome of the state elections, the results of which will be declared on December 11, is a strong factor that will set the tone for equities this week.
The stock markets may witness bouts of volatility due to developments on the political front, they added.
Regulator Securities and Exchange Board of India (Sebi) and the stocks exchanges will step up their surveillance mechanism to check any market manipulation in the wake of exit polls released after market hours on Friday.
The five states whose results will be declared are Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram.
The exit polls on Friday predicted a tight finish between the BJP and the Congress in Madhya Pradesh and Chhattisgarh, and a win for the opposition party in Rajasthan.
“Investors should stay cautious ahead of the state elections’ outcome, domestic and global macroeconomic data and crude oil price movement next week. The five state election results on Tuesday will be crucial for the general elections in 2019,” said Rahul Sharma, senior research analyst, Equity99.
India Today’s exit polls that were released on December 7 showed the Congress will likely unseat the BJP from power in Rajasthan.
The Chhattisgarh election may lead to a hung assembly with an advantage to the BJP, the polls showed. In Telangana, the TRS was predicted to retain power while two exit polls showed the Mizo National Front, a BJP coalition partner, unseating the Congress from power in Mizoram.
[“source=indiatoday]
