State poll outcome is not a big worry for the markets: U R Bhat

The BJP has not done well, especially in the large states. As far as the markets are concerned, the state election results do not matter much

The Bharatiya Janata Party (BJP) has not done well, especially in the large states. As far as the markets are concerned, the state election results do not matter much. This time around, people are extrapolating this to the general elections scheduled in 2019. 

I believe that the current dispensation at the Centre still has some hold over the electorate. This, in turn, is giving hope to the market. The markets have digested the bad news and are now looking ahead to other events. The general elections are still a few months away. In the interim, most negative information is already in the stock prices. 

Going ahead, the market’s focus will turn to financial performance/quarterly results and the accompanying commentary, global developments. Domestic events will not matter much. That said, the replacement for Urjit Patel at the Reserve Bank of India (RBI) has to be found at the earliest. Even at RBI, I expect continuity of reforms and policies, which should augur well for the markets.  (As told to Puneet Wadhwa)

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U R Bhat is managing director, Dalton Capital Advisors. Views expressed are his own.