Modi Mania Continueous......

Just before the 2014 elections, the markets appear to be gambling huge on the Bhartiya Janata Party led by Gujarat Chief Minister Narendra and Modi at the Centre.

The Goldman Sachs in its latest report named ‘Modi-fying our view’ stated that, “Equity investors have a propensity to view the BJP as business-friendly, and BJP’s Prime Ministerial candidate Narendra Modi as an agent of revolution.”

India is currently going through comprehensive challenges in terms of fiscal imbalances, elevated inflation and tough monetary policy but as viewed by analysts, a change in the Central government might be able to attract the investment in the country which is more probable with BJP in power.

The reports further added, “BJP and Modi, in particular, have been listening carefully on infrastructure and capital spending in the earlier period and a BJP-led government may be valuable for the investment demand pick-up, in our view.”

Several other individual analysts and brokerages over the past one month have claimed the same. The VP and Fund Manager, Motilal Oswal Asset Management, Manish Sonthalia believe that the win of BJP in the upcoming elections could actually see the Nifty running perhaps up to 7, 000 odd levels and in case the party loses less than three states, he predicts the fallback of Nifty to 5, 000 – 5, 500 levels.

On the other hand, Arvind Sanger, Managing Partner, Geoshpere Capital Management predicts of a positive market with the Modi government in power.

The Goldman Sachs has raised its investment stance on India to ‘marketweight’ to which one of the major reasons cited was the Modi factor.

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