BJP's poll victories and impact on Sensex: Go long and stay long

Assembly elections proved to be a triumph for the Bharatiya Janata Party (BJP) and the results cemented Prime Minister Narendra Modi’s position as the only individual capable of delivering a pan-India mandate. The BJP recorded decisive victories in Uttar Pradesh and Uttarakhand, and it will also form governments in Goa and Manipur, never mind how!

That UP mandate in itself was enough to boost sentiment and the market promptly jumped to a new high. The rupee also strengthened sharply since the market actually rose on substantial foreign institutional investor buying —many domestic institutions sold into the rally. Interestingly the rupee