'Nifty fall capped at 7500, but high time BJP introspects'
Market experts don't expect a massive selloff on Monday owing to BJP's defeat, but agree that Nifty could fall to lower levels of 7500-7600
While the Indian equity market had factored in a defeat for the ruling BJP party in Bihar, what came as a surprise to many is the margin with which the Grand Alliance of JD(U)-RJD-Congress won the elections.
Market experts don't expect a massive sellout on Monday owing to BJP's defeat, but agree that the Nifty could fall to lower levels of 7600. Speaking to CNBC-TV18, Ajay Srivastava of Dimensions Capital says the landslide defeat was not expected by anyone. So while the market will, on Monday, see greater length of sluggishness, liquidity will define the market movement.
However, Vikas Khemani is just a tad bit more bearish expecting the Nifty to trade anywhere between 7800-7500 tomorrow. However, he is not too alarmed by this prediction as he is convinced foreign institutional investors (FIIs) will jump into the market at lower levels as they have been sitting on the sidelines for long. With that, atleast traders' worries are out of the way. But will that be a luxury India's ruling political party can enjoy? Industry and policy experts say a loud and consensus 'No'.
Mohandas Pai, Chairman, Manipal Education Group and ex-Infosys Director says the BJP defeat is proof of only one thing: the Indian people are not seeing any changes on a grassroot level compared to the hype that was created by the government. The message of the kind of leader Prime Minister Narendra Modi is, too seems to be getting very diluted, says Pai, adding that he seems cold to the industry and should start meeting more Indians here on. "Foreign investors can walk-in and take meetings. The Prime Minister goes to the Valley and meets Mark Zuckerberg and Sundar Pichai and everybody else but I think he has to meet more of Indians. He should have come to Bengaluru and met the IT industry before he went to the Silicon Valley. He would have understood what people want," adds Pai.
MK Venu of Amar Ujala, agrees. " I think the brand Modi is coming down a few notches after Bihar elections. I am saying this because Modi is a man who made Delhi as a presidential contest but Delhi is a small state. So Modi like Indira Gandhi was on a mission to nationalise state elections. So he has to now bear the consequences," he highlights. But this defeat should be used as an opportunity, Venu highlights. "What this defeat and extent of defeat will do is that it will have a positive effect. I think he (Modi) will now get down to doing some serious policy work because every year there are elections: like next year is West Bengal and Amit Shah has said that West Bengal is very important and Assam, they have to capture the east and a year after that is Uttar Pradesh (UP) and UP is mother of all elections," says Venu.
RS Ramasubramaniam, Co-Chairman, Feedback Infrastructure says the defeat in Bihar suggests that the electorate is not buying mere empty promises. "It wants execution. If the government at the Centre takes this message of execution, it will have an impact on the overall economy. So, the point is right that infra and the economy is going to get impacted by either Rajya Sabha mandate or by Bihar elections. It is going to be upon execution and therefore the question is, will this government really takes the opportunity of going forward on that," concludes Ramasubramaniam.
Read more at: http://www.moneycontrol.com/news/ma...ospects39_4056001.html?utm_source=ref_article
Market experts don't expect a massive selloff on Monday owing to BJP's defeat, but agree that Nifty could fall to lower levels of 7500-7600
While the Indian equity market had factored in a defeat for the ruling BJP party in Bihar, what came as a surprise to many is the margin with which the Grand Alliance of JD(U)-RJD-Congress won the elections.
Market experts don't expect a massive sellout on Monday owing to BJP's defeat, but agree that the Nifty could fall to lower levels of 7600. Speaking to CNBC-TV18, Ajay Srivastava of Dimensions Capital says the landslide defeat was not expected by anyone. So while the market will, on Monday, see greater length of sluggishness, liquidity will define the market movement.
However, Vikas Khemani is just a tad bit more bearish expecting the Nifty to trade anywhere between 7800-7500 tomorrow. However, he is not too alarmed by this prediction as he is convinced foreign institutional investors (FIIs) will jump into the market at lower levels as they have been sitting on the sidelines for long. With that, atleast traders' worries are out of the way. But will that be a luxury India's ruling political party can enjoy? Industry and policy experts say a loud and consensus 'No'.
Mohandas Pai, Chairman, Manipal Education Group and ex-Infosys Director says the BJP defeat is proof of only one thing: the Indian people are not seeing any changes on a grassroot level compared to the hype that was created by the government. The message of the kind of leader Prime Minister Narendra Modi is, too seems to be getting very diluted, says Pai, adding that he seems cold to the industry and should start meeting more Indians here on. "Foreign investors can walk-in and take meetings. The Prime Minister goes to the Valley and meets Mark Zuckerberg and Sundar Pichai and everybody else but I think he has to meet more of Indians. He should have come to Bengaluru and met the IT industry before he went to the Silicon Valley. He would have understood what people want," adds Pai.
MK Venu of Amar Ujala, agrees. " I think the brand Modi is coming down a few notches after Bihar elections. I am saying this because Modi is a man who made Delhi as a presidential contest but Delhi is a small state. So Modi like Indira Gandhi was on a mission to nationalise state elections. So he has to now bear the consequences," he highlights. But this defeat should be used as an opportunity, Venu highlights. "What this defeat and extent of defeat will do is that it will have a positive effect. I think he (Modi) will now get down to doing some serious policy work because every year there are elections: like next year is West Bengal and Amit Shah has said that West Bengal is very important and Assam, they have to capture the east and a year after that is Uttar Pradesh (UP) and UP is mother of all elections," says Venu.
RS Ramasubramaniam, Co-Chairman, Feedback Infrastructure says the defeat in Bihar suggests that the electorate is not buying mere empty promises. "It wants execution. If the government at the Centre takes this message of execution, it will have an impact on the overall economy. So, the point is right that infra and the economy is going to get impacted by either Rajya Sabha mandate or by Bihar elections. It is going to be upon execution and therefore the question is, will this government really takes the opportunity of going forward on that," concludes Ramasubramaniam.
Read more at: http://www.moneycontrol.com/news/ma...ospects39_4056001.html?utm_source=ref_article
