Markets haven't priced in political risk like advancing of LS polls: Nomura

The Indian markets were seen reacting negatively in the past few sessions to BJP's poor show in Uttar Pradesh's by-elections

The markets have not fully priced in political risks and there is a 25 per cent probability of the general election getting advanced to 2018, says foreign brokerage Nomura.

“Overall, the outcome of the Lok Sabha election is hard to predict but political uncertainty and noise is set to rise in the next year. Some consideration is needed to be assigned to the opposition parties, performing better than 2014. We believe these political risks are currently under-priced,” it said in a note titled Political storm gathers on Wednesday.

The Indian markets were seen reacting negatively in the past few sessions to Bharatiya