Exit Polls could lead Nifty to reaching new peaks, however, the true gamechanger will be the results on June 4; markets expected to be unstable in the short run

The exit polls have boosted investors' confidence, but the key question is whether the markets will reach new peaks or if investors will opt to take profits in the short term. Some people also think that the markets could experience a combination of both scenarios- an increase in the first half leading to new record highs, followed by profit-taking

Besides exit polls, other factors contributing to a positive market trend include short covering, robust domestic Q4 GDP figures, early predictions of rainfall, reduced crude oil prices, a rise in US market performance, and improvements in the geopolitical landscape.
Motilal Oswal Financial Services stated that the markets will sigh relief and return to normal business operations following this definitive verdict.

Investors stated that on the day of the election results, significant fluctuations could be seen in both the Sensex and Nifty indices, with the possibility of both highs and declines. Arvinder Singh Nanda, Senior Vice President at Master Capital Services, mentioned the chance of profit booking in the second half of the trading session after an initial upward movement.

There is a possibility that volatility will persist in the short run. The sudden increase in volatility during April and May reflects the feeling of uncertainty prevailing among market participants. Last week, the VIX reached a new 52-week high and maintained a level above 24 for the entirety of May's last week.

Motilal stated that the success of PM Modi/BJP is positive for the economy and capital markets since it ensures stability and consistency in policy-making with a government holding a majority, which is likely to keep advancing its economic goals.
In our opinion, this decision, along with the resulting political stability and consistent policy-making, will enhance India's status as the center of attention.