Indian markets have much to rejoice from the verdict of the 15th Lok Sabha elections. Formation of a strong and stable government at the centre would give a big fillip to the market sentiment given the deteriorating economic environment in the country and elsewhere.The opening on Monday morning on Indian stock exchanges is likely to be euphoric. But this feeling can peter out after a couple of sessions as the government gets down to the brass-tacks to tackle the ongoing crisis; sending a grim reality to the markets regarding the economic reality.
And then, there is no getting away from the fact that this rally from the March lows is already 10 weeks old and both global and local indices are currently showing signs of fatigue. But it may not be a one-way street for all. There are disturbing rumours that many traders and some big operators have been caught on the wrong foot following UPA’s convincing win. These are people, who, last week, went short on the market by writing call options, buying puts, and building naked futures positions. While some of these players are staring at massive losses, they are clearly in a minority. Analysts feel Election results may lift market, but the rally will be short-lived.
Reports:-
China keeps buying US bonds despite concerns.
FIIs net sell Rs 288cr in F&O on Friday.
Fresh stimulus expected in 100 days.
Cairn-IOC crude deal beats analysts' expectations.
BSNL introduces video telephony, surveillance and mobile advertising.
Asian markets in red.
