Business Standard

Modi winning 2019 polls: Market has priced in 2nd term for BJP, says UBS

A UBS study of market performance a year before elections since 1996 shows the Nifty has gained four out of six times

Prime Minister Narendra Modi
Premium

Prime Minister Narendra Modi

Pranati Deva New Delhi
The 2019 general elections are still about a year away, but markets seem to have already priced in a second term for the incumbent Narendra Modi-led National Democratic Alliance (NDA) government. In a recent client note, brokerage UBS said while most investors had assigned a ‘very high probability’ of Modi winning the 2019 elections, markets had already priced this in.
 
A K Prabhakar, head of research, IDBI Capital, agrees with the brokerage. “With the valuations already so expensive, we can easily say that markets have priced in Modi's victory. Political stability in the country is a major reason for rising valuations,”

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 27 2018 | 11:13 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com