Assembly election outcome key for market direction

In the immediate term, they will sway to the Budget proposals with sector and stock specific action

At a time when most participants have their eyes glued to the upcoming Budget proposals for an insight into the road ahead for the markets, the market direction over the next few months, however, may actually be decided by the outcome of the Assembly polls in Punjab, Uttar Pradesh (UP), Goa, Uttarakhand and Manipur that begin on February 04.

Incidentally, both the key events - the Union Budget and the assembly elections - come in the backdrop of demonetisation. The outcome, to be announced on March 11, could create distractions (or positives) for the government it will be interpreted as a