MUMBAI: Dalal Street investors are bracing themselves for a fresh round of surge in the markets when it opens for trading on Monday on the hope of a quick economic revival following a landslide victory for BJP.
On the one hand, brokers and dealers expect foreign fund managers, who were on the sidelines waiting for the results, to jump into the market. On the other, they also expect Indian institutions, which were big sellers on Friday reportedly on instructions from the government to cool down the markets after the sensex crossed 25K in early trades, to turn net buyers.
They are expect high networth individuals (HNIs), who have been big buyers in the last couple of weeks, to continue their buying spree. “There are some FIIs whose mandates do not allow the fund manager to buy simply on expectations, but only on confirmation of an event. Those FIIs are now sure to buy on Monday,” said an investment analyst. “Such buying by institutions is likely to take the market higher,” he said. The naming of finance, home and industries ministers could also trigger some buying, market players said.
On a slightly longer term view, top brokers expect the new government to deliver on its promises. Frustrated by the policy paralysis of the UPA government that slowed the GDP growth for over three years, they are now looking forward to the Modi government to put the economy back on the growth path. “We want to see this government revive investment scenario in the country, which will revive growth and increase employment opportunities in the country,” said Nilesh Shah, MD, Axis Capital. Shah is betting on Modi to replicate his famed Gujarat model of development on a pan-India basis. Investors on the Street are also looking at another multi-year bull run if the government is able to deliver on its promises.