Whether the stock market will remain bullish or bearish after June 4, many arguments and arguments have arisen in the minds of investors and traders. Curiosity has arisen regarding the direction in which the market will actually move. Before that, the bullish and bearish pressure will be widely felt in the stock market on June 3 i.e. Monday.
Election results are reflected in the stock market
How will the election trend? In terms of how many seats each party will get, everyone has a different prediction in mind. Its reflection is visible in the stock market. As of now Nifty is at 22,500 level. The cycle of boom or bust depends on the strength of the BJP and its allies on June 4.
If the BJP is able to form the government on its own after the results are announced, the stock market may get a different and better message. Looking at the history of the five years of Lok Sabha general elections, you will notice that before the results of the elections, there was a bearish atmosphere in the market. Similar signals were seen last week; But on Friday, there was a bullishness in the market.
In the last few weeks, the investors and traders etc. classes in the stock market have recovered the profits. Therefore, they have a large amount of liquidity. These congregations decide according to their own logic or estimation which setter to buy and sell shares. Looking at the overall market sentiment, the infrastructure sector is likely to have a sustained boom. Such a boom will be long term. Therefore, considering the long term, the market will be booming for a long time in the sectors of energy, railways, roads, transport, cement, steel etc.
Which party will come to power based on traders' mindset perspective in the short term? Considering all these factors, which are the shares of the lobby of that party, which companies they will always be in search of, they can get profit from the shares of many companies like NHPC, LIC, SAIL, Union Bank, NTPC, HP, Indian Oil. In reality, though there was a short-term slump in the buying and selling of shares, after the formation of the new government, the economic decisions taken by them, their implementation and the confidence in them will be reflected in the stock market. Such forecast information is available to experienced investors, traders and financial institutions. They are taking advantage of it.
The confidence of the stock market will depend on the result
As of now, if the National Democratic Alliance government gets a marginal majority or less seats, the Nifty may stumble between 21,500. If the BJP and its allies will somehow form the government, the confidence in the stock market may decrease. Because, if there is no stable and strong government, there is a doubt in the mind of the investors whether the decisions in the economic nature will be made in the right way. Therefore, the stock market is likely to be prone to recession. According to this, Nifty can travel from 22 thousand to 21 thousand.
On the other hand, if the BJP and its allies get 300 to 325 seats, the Nifty may hover between 22,500 and 23,000. Because, this will solve the issue of instability of the government. If Raloa wins by more than 325-330 seats, Nifty may move higher towards 23,500. It is a numbers game in the mind of the public or in the mind of some individuals. It will be important to see how the actual market will continue, whether there are any major positive or negative signals from the global level. One thing is certain, in the long run, the formation of a one-party or strong majority government will boost market confidence.