The Bharatiya Janata Party (BJP) topped all expectations to race towards a stupendous Lok Sabha victory, with 282 seats of its own in the 543-member Lok Sabha, as India voted decisively for a stable government under a strong leader. This was the most unambiguous victory for a single party since 1984, when the Congress had bagged more than 400 seats.
The scale of the victory of the National Democratic Alliance took time to sink in but when it did, India Inc was ecstatic that the long wait for a stable government at the Centre was finally over. Expectations are running high that the new government would unleash the next wave of reforms, which would have a positive multiplier effect and herald a new growth cycle.
Over recent years, CEOs have maintained that one of the primary concerns of industry has been the slowdown in growth on account of policy inaction and various scams and allegations of corruption, leading to low business confidence. A key expectation is to restore the confidence of the business community through effective governance and enforcement of anti-corruption laws.
Since January, foreign institutional investors ( FIIs) have invested Rs 41,221 crore in Indian equities in anticipation of a pro-reform and progrowth government at the Centre.
Indian stocks are on the cusp of a bull run and could gain 10-15% before December, said Jim O'Neill, former chairman of Goldman Sachs Asset Management, he said that investors would revise economic forecasts if the new government implements reforms, especially in retail and banking sectors, and opens up the economy.
"They are already talking about 6.5-7% growth in FY16, if the government follows investment reforms. At the end of FY16, people may look forward to 7-8% growth," said O'Neill over phone from Las Vegas. India, which is able to form a majority government in 30 years, is a positive by itself, he said.
Moreover, International investors are excited about a business-friendly government at the Centre.
Lets See..
>>> Nifty Monthly - As Updated Last Weekly Review <<<
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Last week wrote about Monthly chart break out and possible bulls Move. See what happened ...!!!
>>> Happened and Yet to <<<
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No worries for bull. More upmove coming soon...
>>> Nifty Weekly - As Updated Last Weekly Review <<<
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Wrote last week that a break above the channel needed for further upmove. See what happened.
>>> Happened and Yet to <<<
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Clear Break out from the channel as wrote on last weekly review. Hope for more rally.
>>> Nifty - Hourly Chart <<<
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A gap opening on the Election result day and followed by a correction - shows bulls are healthy still - as I marked it as sub wave (ii). Hence Friday low looks very crucial and if not taken out - upmove should resume again.
>>> Bank Nifty - As updated Last Weekly Review <<<
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Wrote last week - bank nifty made a clear break out - See what happened !!!
>>> Happened <<<
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No words to say - Bank Nifty roared as expected.
>>> Stock performance of the week <<<
>>> Bank Of India <<<
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>>> NTPC <<<
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>>> IDFC <<<
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>>> Rcom <<<
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>>> Escorts - As Updated on Last Weekly review <<<
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>>> Happened and Yet to <<<
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Yes - Stock moved near First Target - More upmove ahead.
>>> Essar Oil - As Updated Last Weekly Review <<<
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We are long in essar oil since last month. See what happened
>>> Happened <<<
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Yes - Essar Oil hit our Second Target also.
>>> Torrent Pharma <<<
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Stock hit the Target next day - hit upper circuit. Wonderful return.
>>> Jindal Saw <<<
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Just Buy Jindal Saw next week for a good return. We are long in this counter. Cheers!!!
>>> Performance <<<
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