Election uncertainty to keep Indian equities on edge - Reuters poll

Omkar Godbole FXStreet Contributor

How Indian equities fare this year will depend heavily on the outcome of national elections in May and market experts polled by Reuters cited a majority win for the ruling party as the most favorable outcome.

Key points (Source: Reuters)

The BSE Sensex is forecast to gain 2.7 percent to 36,960 by mid-2019 from Tuesday’s close of 35,973.71.

The index is expected to rise to 37,975 by end-2019, a downgrade from 39,400 forecast in November’s poll.

If the BJP wins a majority of seats, that would help the BSE Sensex gain over 7 percent in the election’s immediate aftermath.

BSE Sensex is forecast to fall 3 percent if an INC-led coalition forms the next government.

Markets are seen falling 7.5 percent immediately after elections if an alliance of regional parties form the next government.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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