Markets await bull run tomorrow with UPA on board without Left

Mumbai, May 17: Enthused by the decisive verdict to UPA, the stock markets could witness a strong rally of up to 1,000 points with investors particularly rejoicing that the new government would be without the influence of Left parties.
Domestic brokerage firm Angel Broking CMD Dinesh Thakkar said, "... The UPA could form the (next) government without the Left (and it) will further soothe investors' nerves. The markets are expected to rally as fresh money from FIIs and those waiting on the sidelines on account of the political uncertainty, makes its way to Indian stock markets." As it is now clear that the UPA would form the government again, and without the Left support this time, analysts said the Sensex could rise by 700-800 points on Monday -- the first trading day after the announcement of the results.

After the 2004 elections, the markets plummeted over 800 points at the prospects of Left parties exerting influence over policy decisions of the UPA government. Tomorrow's rally, if it takes place, would be just the opposite of what happened on bourses after the poll results were out five years ago.

"The verdict of the people is clear ... The Left is left out. The UPA has a clearer mandate than they had during the last polls," Kejriwal Research and Investment Services Head Arun Kejriwal said.

While most of the market experts expect a rally between 400 points and 700 points, some of them said the surge could be as high as 800-1,000 points. PTI