Jyotivardhan Jaipuria, Bank of America Merrill Lynch says the voter turnout so far has been substantially higher than that of the previous Lok Sabha elections in 2009. "We think this has led the market to believe that opinion polls that showed a strong BJP and NDA," he adds.
Jyotivardhan Jaipuria, Bank of America Merrill Lynch says the voter turnout so far has been substantially higher than that of the previous Lok Sabha elections in 2009. "We think this has led the market to believe that opinion polls that showed a strong BJP and NDA," he adds.
According to him, history does partly reinforce that the high turnout could result in a strong showing for the BJP and their NDA alliance. "However, it may not be enough to say that the 260-265 seats that polls gave the NDA are going to reflect in actual results," Jaipuria adds.
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Meanwhile, Chris Wood, CLSA feels any pronounced equity market weakness is likely to lead to the Fed reversing its tapering course which is then likely to be viewed positively by the US equity market.
"Greed & Fear would be surprised if the current sell-off in US equities did not persist awhile longer. But the longer the Fed proceeds with tapering the more bearish implications it has for US equities and indeed risk assets everywhere," Wood adds.
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