New Delhi: Trading sentiment in the stock market this week will be driven by the election results in Gujarat and Himachal Pradesh, say experts. Investors will also be keeping an eye on global factors like US tax reforms and crude oil prices, they added.
“The verdict of Himachal and Gujarat state election will be the key trigger for the market this week. The cues from winter session (of Parliament) will also be closely followed. “Any deviation from exit polls could negatively impact the market sentiment in the near to medium term. Post election results, market will also look towards global cues and US tax reforms,” said Vinod Nair, Head of Research, Geojit Financial Services.
Exit poll findings have given the Bharatiya Party Party (BJP) an upper hand in both Gujarat and Himachal Pradesh. “Going ahead, the focus would be on election outcome to be declared on 18 December along with the winter session of Parliament which has just commenced. Globally, eyes would be on US tax bill related developments as well as on crude prices,” said Teena Virmani, vice president – PCG Research, Kotak Securities. “We may see optimism to continue on Monday on the day of election results,” said Anita Gandhi, Whole Time Director, Arihant Capital Markets. Over the last week, the Sensex notched up a significant gain of 212.67 points, or 0.63%.
The Nifty was up 67.60 points, or 0.65%. “Market would initially rejoice the victory when results are finally out by Monday but soon correction would resume. Only for a week the market will be active after which year end holiday mood will grip the whole world. The Parliament session will have some fireworks which the market will be watching.
“The mood of the market will remain buoyant and stock specific movement will dominate the week but in general the wait and watch phase will continue,” opined Jimeet Modi, CEO, Samco Securities.