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.
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