Market outlook: Exit polls, election verdict to set the trend this week

Analysts added that all eyes will glued to the 'vote quotes' as the verdict will produce trends that will last for years

Exit poll trends will set the tone for the equity markets in the initial part of the week, while the final outcome of the general elections on May 23 would build the road ahead for stocks, analysts said.

Investors should also brace for bouts of volatility in view of the high-octane election related events, they added.

Exit poll trends would start coming in on May 19 after the close of voting.

Experts are of the opinion that bourses may be indecisive till the final election outcome is known.

"This week there is an event that is able to produce long-term trends in the market and is the factor that sets the tone for wealth creation. The political events like election results usually produce trends that last for years. Hence, it becomes very important for the economy and investors," said Mustafa Nadeem, CEO, Epic Research.

"There can be sharp movement in the markets but the exit polls bring some decisiveness on the table as well," he added.

"This week is going to be the most happening of the year wherein all eyes would be glued to not 'stock quotes' but 'vote quotes'," said Jimeet Modi, Founder and CEO, SAMCO Securities & StockNote.

Quarterly earnings would also impact trading as some major companies are scheduled to announce their financial report card this week, including Tata Motors, Canara Bank and Cipla.

Besides, the US-China trade related issues, crude oil prices, rupee movement and foreign funds trend would influence trading sentiment, they added.

During the last week, the BSE Sensex gained 467.78 points or 1.24 per cent.

On Friday, the 30-share benchmark closed 537.29 points, or 1.44 per cent, higher at 37,930.77. Similarly, the broader Nifty rose 150.05 points, or 1.33 per cent, to settle at 11,407.15.

"Indian markets have shown tremendous strength before the long-awaited exit polls, despite the ongoing ambiguity in US-China trade talks," said Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking Limited.