Delhi poll tremors push markets down

Sensex plunge due to worries over stalling of reforms process of the central government

GN Bureau | February 9, 2015


#Delhi polls   #delhi elections   #market   #sensex  


Delhi elections results are going to be declared on Tuesday but the effects of exit polls after Saturday’s vote are being felt in the markets.

The S&P BSE Sensex closed 491 points lower at 28,227 with BSE's market capitalization just a tad over the psychologically important Rs 100 lakh crore mark. On the NSE, nifty lost 135 points to close at 8,526 on Monday morning. An average of five exit polls gave AAP 41 seats, BJP 27 and Congress 2 in the 70-member House.

Delhi polls: 67 per cent voter turnout recorded

For the record, Delhi overcame its lethargy and voted in large numbers to establish a new record at 67.08%. The Delhi polls should not cause panic as they are at best termed as state elections. But the worry of the markets is possible effects on the reforms process of the Modi government.

Many investors may act as a victory for Arvind Kejriwal-led AAP in Delhi would make it tougher for Prime Minister Narendra Modi to push through reforms — mainly in the areas of mining and labour — considered crucial for the recovery of business sentiments.

The opposition may again stall many bills in Rajya Sabha and slow down much needed push to the economy in the budget session.

The Delhi results may also boost Nitish Kumar to Mamata Banerjee, who have not shown much vigour in economic policies.

Meanwhile, ignoring the exit polls the BJP is going by the internal survey. It gives the BJP 36-39 seats. This survey was discussed at a meeting of the party on Sunday. There will be a close fight in some seats and this is a reason for optimism. In the last elections the BJP’s losing margin in 16 constituencies was very little.

Delhi BJP in-charge Prabhat Jha, BJP general secretary Ramlal, Delhi BJP president Satish Upadhyay, BJP's chief ministerial candidate Kiran Bedi and senior BJP leader V.K. Malhotra attended the meeting to assess the current political situation. All the BJP candidates for the Assembly polls were present in the meeting.

"We assessed the ground realities for each Assembly constituency. Based on people's feedback and assessment of candidates for their respective seats, we forecast that the BJP will form a government in Delhi under the leadership of Kiran Bedi. We are not talking about any particular number on February 10, when the results come out, but our forecast is that the BJP will definitely form the government," Upadhyay was quoted in media reports.

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