May 17, 2019

Nifty can slip up to 15% if Narendra Modi-led NDA fails to form govt: UBS

A recent report co-authored by Gautam Chhaochharia, the UBS head of India research, along with Dipojjal Saha and Rohit Arora, expects the Nifty to slip 10-15 per cent if the Narendra Modi-led National Democratic Alliance (NDA) fails to form the government at the Centre. The projection is based on sharp reactions witnessed in 2004 and 2009 after general election outcomes.

UBS expects the Nifty to move up 5-10 per cent, crossing their upside (and recent peak) scenario of 11,800 in case the Bharatiya Janata Party (BJP) gets a single-party majority. On the other hand, a BJP-led NDA win (over 250 seats) could see the Nifty move up by 5 per cent to touch its recent peak, the report says. In case BJP-led NDA wins less than 250 seats, UBS expects the markets to remain volatile in the near-term and wait for the government formation before making a directional call.

Read more at https://www.business-standard.com/article/elections/nifty-can-slip-up-to-15-if-narendra-modi-led-nda-fails-to-form-govt-ubs-119051600494_1.html

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