Firstly today Nifty is going to open on a big gap down and the entire blame of it need not be taken by the exit polls. Friday was a horrible day for the US market where Dow Jones lost more than 550 points on the fears of global slow down is being a reality now. NASDAQ is even-more worst as it lost more than 3% and the Brent Crude has risen by over 5% and quickly it moved from 59 dollars to 62 plus dollars on the back of a cut in oil production and a drop in US weekly inventories. Asia is also in deep red today morning with all the markets down by more than 1%. Hong Kong and Japan are close to 500 points down.
Coming to domestics, we have many problems to deal with. First is the fiscal deficit which comes at 2.9% of GDP up to Q2 of this financial year. It is a very bad sign as spending is very high and the Govt is unable to control it. Brent Crude going up more than 3 dollars will put pressure on some of the oil marketing companies but the news we can’t ignore is the Exit poll results. There were 9 exit polls which were conducted for 3 states of Rajasthan, MP and Chhattisgarh. For Rajasthan, 8 out of 9 exit polls say Congress is going to win and 1 exit poll predicts a slender win for BJP. In MP 5 exit polls predict win for Congress and 4 exit polls predicted win for BJP. In Chattisgarh 4 exit polls predicted a win for Congress and 5 predicts a win for BJP. So, not a good news for the markets.
On the derivatives front, the last one hour of trade saw some bullish positions coming onto the market. Though the Nifty futures positions remained stagnant with longs and shorts almost in equal, the options market saw Nifty put-call ratio going up from 1.44 to 1.47 levels. 10500 put added 4.9 lakh positions, 10600 put added 4.6 lakh positions and 10000 put added 4 lakh positions and 10000 put now has the maximum open interest at 41.9 lakh positions. On the call side 11200 call added 5.1 lakh positions and 11100 call added 3 lakh positions and 11000 callthough has shed open interest, it Chhattisgarh the highest in open interest. All this will change today if nifty opens big gap down.
What is the Nifty call for the day?
Global slowdown fears, increased Crude prices, worsening fiscal deficit and exit polls throwing up possible losses to BJP will mean we will have a huge gap down of more than 120 odd points and we might open around 10550 zone and that means we will be back to protecting 10500 again. On the downside 10480-10500 will offer support and a rally in the late day might take Nifty past 10600 mark. So, I suggest going long on this fall around 10520-10550 levels with 10620 as the target
This is neither an exit poll nor an opinion poll. It was not done by taking any sample or meeting any voters on the ground. We have taken the data from the past, observed the trends of voting and percentage of votes at the first level. Then we looked at the candidates contesting, which party they belonged to before, as the second level. Then the third level is the campaigning done by top leaders of BJP and Congress and how they were able to swing the voters. All these are based on my observations and from the news reports.
The methodology adopted for each state is different and it is as follows
1. Telangana: We have only one election ie 2014 data which is relevant as the state was carved out from AP in 2014 and the political equations before were very different and hence irrelevant. Here we looked at every constituency and the votes polled for TRS and compared it with INC-TDP. We have not just taken a mathematical value but we based it on how many votes of TDP can be perceptually transferred to the Congress. For every constituency it is different. We have also taken into the note of the fact that the desertions that happened in TDP, INC and YSRCP and all of them went to TRS and how it can impact on the ground level. Many were given tickets in this elections also. So, we looked at the winnability of a candidate from that angle also. and projected individually for all the 119 seats.
2. Chhattisgarh: Here also we have gone constituency wise and we looked at the 2008 and 2013 elections and their results and the candidates who have been changed and the candidates who were kept constant. We also looked at the possible impact that BSP-Ajit Jogi combine will have on the elections and have come up with the forecast for the 90 seats.
3. Madhya Pradesh: Here we have gone region wise. We have divided Madhya Pradesh into 5 regions of Malwa, Bhopal, Mahakaushal, Vindhya Pradesh and Chambal and we have subdivided these 5 regions based on the 52 districts in MP. We looked at the data of 2008 and 2013 elections and have assumed and made projections on the fact that if there is a uniform 7% swing against BJP in this election from the 45% vote they got in 2013 what will happen to each region. We have averaged 2008 and 2013 and on that average, we took a 7% swing to project for the 230 seats.
4. Rajasthan: This is the toughest as no party got elected twice. so, taking 2008 and 2013 won’t be sufficient. So we went back and took 1998, 2003, 2008 and 2013 data which has 2 congress wins and 2 BJP wins and projected for 2018. We have divided Rajasthan into 7 regions of Bikaner, Shekhawati, Hadoti, Vagad, Mewar, Marwar and Dhundhar. There were many factors like Rajput anger on BJP, Anger against Vasundhara but positive perception of Modi, traditional BJP and INC strongholds that were considered. Like MP, for Rajasthan also we have gone for district wise predictions for all the 7 regions covering the 200 seats.
All this was done for an educational purpose and by combining analytics with ground level incidents and not taking any voter opinion. So, the accuracy entirely depends on how well we were able to capture the mood of the past voter and mixed with the present political dynamics and project the voting trends and converting them into seats.
Just when you are thinking that things are getting better, RBI throws a spanner. Yesterday night Dow Jones closed 400 points up, the trade tensions seems to have come down as Donald Trump indicated that he might not escalate the trade tensions further and that was taken very positively across the globe. Japan is up 400 points, Hong Kong is up 300 points and all the other Asian markets are positive. On the other hand, the better than expected oil reserves in US has pulled Brent Crude further down to 75 dollars which is picture perfect for Indian markets to have a minimum 80-100 point rally.
The SGX Nifty opened 80 points up but now all the gains are erased. Why?
Fundamentals, when they come into play, all other factors have to go back. The biggest Indian fundamental today is the rumour that Govt is invoking Section 7 of RBI act which makes it mandatory for RBI governor to follow the instructions of the Finance Minister. That has put Urjit Patel in a tight spot and it is rumoured that Patel might resign today. Till now, in the history of India, section 7 was never invoked not even in the crisis period of 1991. This is a very bad news considering the uncertainty surrounding the economy and the liquidity issues. It is not that if Patel resigns the markets will fall but markets will fall only if there is an uncertanity. But if the Governor actually resigns then you can see the markets going up instead of going down.
The other fundamentals like Q2 results doesnt matter much in this scenario but the Q2 results continue to be mixed with Bank of Baroda coming up with a fantastic results. The slippages have reduced to a seven quarter low and the gross NPAs have improved and this happening to a PSU bank which is on the verge of merging itself with Vijaya bank and Dena bank is a good news. There are many companies coming up with their Q2 numbers today and L&T is the most important amongst them. L&T is expected to declare losses on Hyderabad metro rail front, but on the other fronts its performance is expected to be good and the overall result is expected to be very good.
On the derivatives front, yesterday was a steady day in the Futures market with equal number of positions getting created on the long and the short side. The long positions have stuck at 31% and that is due to the volatility we have seen during the day when Nifty moved between red and green. On the options market, however, there was more bearishness than bullishness and the Nifty put-call ratio fell to 1.49 from 1.51 seen at the beginning of the day. 10000 put added 3.5 lakh contracts while 10200 put added 3.2 lakh and 9500 added 2.8 lakh contracts. On the call side, 10300 call added 5.2 lakh contracts while 10600 call added 1.7 lakh contracts.
What is the Nifty call for the day?
If not for RBI we would have had a 10250 and above opening and you would have closed your positions taken yesterday with the target met. Now, you need to wait for sometime. The opening will be in red and it could be around 10150 levels. 10000 on the down side will be tested if there is an adverse news where Governor resigns on a bitter note. Otherwise if there is a certainty coming during the way, expect the Nifty to touch 10300 levels. So, its going to be a very volatile day, so keep watching the Nifty closely and exit your longs as soon as you get a 50 point profit. If it doesnt come today dont hesitate to take the position to tomorrow.
BJP will not win a majority, but nobody else other than BJP can form a Govt in 2019!
Hello Everyone. Tuesday is here and I am back with my final post on 2019 Elections Predictions. I have in my last 4 posts on elections predicted the seats that the parties are going to win in the coming 2019 elections. We have seen that it is BJP which is ahead but not enough to win the elections on their own capacity. Apart from this there are few more very important points to be considered which are crucial. Standing on today as per the present situations my predictions are given below:
NDA = 289, UPA = 104, Third Front = 90 and Fourth Front = 60!
Shiv Sena 16
Kamal Haasan 6
So, it is wrong to assume that all the Non-NDA and Non-UPA parties are in the third front. You also should understand that there is a Fourth Front which is opposite to the third front and cannot align with the third front. So, if UPA aligns with third front, it won’t get the support of fourth front. For example, TRS cannot align with congress because it is directly fighting Congress in Telangana. Similarly, TDP cannot align with YSRCP because they are fighting each other in AP. That presents me with 5 takeaways from the predictions I made in last 4 weeks.
BJP is all set(?) with the help of its allies to retain the power in 2019!
BJP is sitting on 240 seats and by adding the seats of its allies the tally goes to 289. Which means there are 49 seats which are coming from its allies. BJP last time had 282 seats and this time they are at 240 seats and that’s fall of 42 seats. The two parties with maximum support to BJP are Shiv Sena and JDU in Bihar. These are the two parties which may change their minds at the eleventh hour. Though it’s not alarming news for BJP its surely a call to do something big to come back to power on its own. Because we never know in politics who jumps the castle.
Third Front is not as strong as we think because we have Fourth Front which got emerged from third front!
Not very long ago there were articles written and posted on the birth of ‘Third Front’ which as per a class of journalists would form the next Government of India. So to put this argument to an end, my predictions give Third Front just 90 seats. That’s not even 1/3rd. If we add congress seats to Third front the tally goes to 194. That is nothing close to majority. The Fourth Front is the actual new born baby because there was a cold war between parties of third front and that lead to unofficial withdrawal. That has brought fourth front into scene which may not support BJP directly but give outside support if needed. So 60 seats are huge number and let’s remember that a coalition made out of 10 parties can never rule country!
BJP is losing seats in Northern India and Western India but it is picking up seats in Southern and Eastern India.
BJP overall has 240 seats which looks to be a good number, but when you look into the statistics you will know that BJP is losing in the strong holds like Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra. Each state there is fall of average 30% fall in the seats won compared to 2014. But the good news being the BJP’s has strengthened in Eastern India and Southern India. Though there is gain in south and east the gain is not good enough to beat the fall in west and north India.
This is perfect battle because the BJP’s Loss is INC’s gain!
If we see BJP is losing 42 seats from its 2014 tally of 282 and INC is winning 34 seats more than what it won in 2014. It shows how nicely INC is able to hit the areas where BJP is losing. We can even conclude that these numbers were won by BJP in 2014 majorly because of Modi wave. The loss of 40 seats is not big in a General election but it’s the pick that matters. That’s where Congress is doing really well to pick up the seats which BJP is losing.
Will BJP form the Govt or Will the Karnataka Scenario hit the Nation in the month of May 2019?
Yes, BJP has 240 seats and its alliance combined takes it to 289 which is 15 seats more than the Majority mark. But the big worries for BJP are coming from Nitish Kumar of JDU whose 19 seats could cost them the majority. Shiv Sena which is somehow dissatisfied with BJP and if Shiv sena moves out then NDA seats will fall further to 254. That will also mean UPA+Third Front tally will go to 194+16+19=229. If leaders like Mamta Banerjee, then somehow manage to get KCR and Naveen Patnaik on board to support from outside then that 229 gets another 26 seats which takes their total to 255.
So now we are at NDA 254 and UPA+ThirdFront+JDU+Shivsena+BJD+TRS at 255. The climax then shifts to Tamilnadu where Thalaiva Rajnikanth is expected to win 19 seats. Whoever gets those 19 will cross that magical figure of 272!!
Knowing Rajnikanth well, it’s not tough to say that he will throw his weight behind Modi than behind Congress or Kamal Hassan.
So, final conclusion is that as per the present situations if elections are conducted, it is clear that BJP will win the 2019 elections in any conditions until or unless there is drastic change in the political scenario! Hope you liked this five-part series of mid-year 2018 predictions!!!
Lok Sabha Elections 2019 Predictions – Northern Region
So I am back with the Elections Predictions on this Tuesday. The journey of predicting for the General Elections 2019 which started on 29th May is going to complete the region wise picture today and next week will be the All India picture. When we last visited election predictions and stopped with Western India Predictions, NDA was sitting at 214 seats and UPA at 203 seats with 126 seats left. Today you will know who will be the people’s choice in 2019 elections. But just few words before talking about the North Indian states, this predictions thing has seriously helped me in understanding the politics in the country. Someone who had restricted himself to Telangana, now has good knowledge on almost all the states.
Fine, so coming to the Northern Indian region of India. We have 7 states and Chandigarh here with 126 seats. Out of the 126 seats it’s the Uttar Pradesh which takes 2/3rds with 80 seats and rest 46 divided between other states. Let’s see if UPA is going to do any harm to NDA or will NDA retain the power in 2019!
Uttar Pradesh: The Big State with 80 seats which was the jackpot for BJP in last elections is looking to be a disappointment this time. 2014 saw BJP winning as many as 73 seats and SP+BSP put together winning only 7 seats. This was a huge victory for BJP. This time though BJP will have to taste the bitterness as the predictions show that BJP will fall to 48 and SP+BSP alliance is looking to come back strong and win 32 seats. It is only in Paschim Pradesh or Western UP where BJP is kind of sweeping with 19 out of 28 but not as good as 2014 where it had won 25 seats. Avadh the minority dominated region and a strong hold of SP will be setback as BJP which won 11 last time out of 14 is now dropping to 6. Purvanchal is yet another disappointment for BJP, in the 2014 elections BJP has won 31 out of 32 and this time they are falling to 19 seats. It’s a victory for SP+BSP as they are jumping from 1 seat to 13 seats. And from the last region of 6 seats Bundelkhand BJP is losing 2 seats compared to 6 they won last time. Big point is I am expecting Rahul Gandhi to lose the election to Smriti Irani from Amethi.
Jammu and Kashmir: To the top most state of the Country, in the last elections BJP was in alliance with PDP and it was a great move as they went on to win all the 6 seats. PDP won 3 from Kashmir region which has about 98% Muslim population, BJP won 2 seats in Jammu and 1 seat from Ladakh. We know that the alliance is no more in place and BJP will not and cannot win anything in Kashmir so straight they will fall to 2 as Ladakh is also looking difficult for BJP.
Punjab: The only state where Congress is in power after 2014 elections. Akali Dal and BJP lost the assembly elections badly and Congress came back to the power in 2017. This will really effect the BJP+SAD and their numbers will drop to just 5 out of 13 seats. AAP has lost all its value and will not win anything. INC will gain majorly and will be up from 3 last time to 8 seats now.
Delhi & Chandigarh: The capital has got 7 seats and BJP had clean swept all the 7 seats in the last elections. This time though due to some political problems and anti-incumbency will make way for Congress. Expecting BJP to lose 2 seats and might win 5 seats. From Chandigarh the only seat will go to Kirron Kher from BJP. Congress might win the remaining 2 seats in Delhi.
Uttarakhand and Himachal Pradesh: Two states which are Pro BJP and I am not seeing any trouble for BJP. Both together there are 9 seats, Uttarakhand 5 and Himachal Pradesh 4. In 2014 BJP won all the 9, expecting BJP to do the same in 2019.
Haryana: Another state which has the feeling of anti-incumbency and it will hurt BJP. Last time BJP has won 7 seats out of 10. This time with the fall of 2 seats BJP will retain 5 seats. It is the Indian National Lok Dal which is going to gain more due to the political issues in the state.
These are the predictions for the Northern Indian region and the race of prediction for the regions has come to an end. My predictions for the Northern India gives BJP 75 seats, INC 12 seats and others at 39 seats. Which takes the tally of BJP or NDA to 289, UPA to 95 and others to 159. With no confirmations on who will join whom and whether the present coalition parties will stay or not these numbers still look dangerous even though NDA might cross the majority mark. BJP+Allies as of now are at 289 without adding any support from South Indian states. In my South India predictions, we have seen Rajinikanth winning good numbers. There is always chance of parties jumping here and there.
Next week will be my concluding post where I will give you state by state figures for all the states and also will tell you how many seats BJP alone can win. Will it be less than 272, then how much less it will be and who are the partners it can bank upon. Wait for the concluding post on 3rd July, you will surely find it interesting!
Lok Sabha Elections 2019 Predictions – Western Region
Tuesday and its third consecutive post on the elections 2019 predictions. The contest is getting tighter and tighter and the competition for the Crown isn’t too far. By this time next year, we would be under the rule of ‘Newly Formed’ Government ‘BJP led NDA’ or ‘INC led UPA’. This time the contest is more going towards a two-party fight unlike previous elections. Yes, its not sure how many parties are going to join hands with INC in UPA but NDA is going to face tough task this time as reports suggest. Today it’s the Western Region and I have 132 seats under my prediction scanner from 5 states and 2 union territories. 5 states are Maharashtra, Gujarat, Rajasthan, Madhya Pradesh and Goa. Union territories include Daman & Diu and Dadra & Haveli.
1. Maharashtra: Let me start off with the most crucial state for the coming election and that is Maharashtra. It has the Highest number of seats at 48 of which BJP+Shiv Sena together won 42 in 2014. It was a sweep for BJP. This time around expecting that BJP will have coalition with SHS the predictions are made. Unlike last time, I feel that BJP+SHS might not do well and will see a fall in the seats. The damage is majorly because of Madhya Maharashtra going Congress way, thanks to an alliance with NCP. This way BJP is going down to 34 seats and Congress-NCP alliance is gaining 8 seats more to go to 14 seats. It can even get worse for BJP if they fail to keep Shiv Sena with them. If BJP fights alone the tally might comedown from 34 to just 15. We will see many events rolling up in the coming days in Maharashtra!
2. Gujarat: Last time on the back of Modi wave Gujarat was clean swept by BJP by winning all the 26 seats. But this time things have changed, when electorate gives 100% seats for a Party then it has got that power to develop and do well. From the assembly elections which happened very recently that was not to be. BJP struggled but finally won it for one more time. That unhappiness in the minds of people might be an advantage for Congress and they will be able to do the damage that’s going to change the things a bit. Saurashtra was the biggest problem for BJP in assembly elections. But this time its not going to be that easy for Congress to sweep Saurashtra. Personally, I feel INC might not capitalize and BJP will lose seats but not a big downfall. BJP will be able to take 21 seats and Congress will win 5 seats.
3. Rajasthan: Another jackpot state for BJP where they have won all the 25 seats in 2014 elections. Rajasthan is a very critical state. Assembly elections are nearing and the tide is not going in favor of BJP. Few People feel that Vasundhara Raje has not delivered enough and few are happy. Which few is majority is what we will see in the assembly elections in November. That will have big impact on the Lok Sabha Elections as well. My feeling says that BJP will lose it badly this time and I see BJP at 16 and Congress at 9. This is a big fall from 25 seats. The regions where BJP will be losing will be Alwar, Ajmer and Mewar regions. These regions have their own problems which BJP has to pay for.
4. Madhya Pradesh: In this three-region state of Madhya Pradesh, last elections saw BJP winning 27 and INC winning only 2. This is another state which will be up for polls this year November. It has been always a strong state for BJP and has got good leaders. That 27 seats winning was a big achievement for BJP which they will not be able to achieve in the coming elections 2019. One of the reason being the farmers unrest. Always BJP has been winning this state since last 3 terms with very good majority. So, it’s going to be really interesting to watch how the results fare. With the news and data, I have got, I feel that BJP will come down big to 18 from 27 and INC will increase to 11 from 2. This is majorly due to the drop in the seats of BJP in Maha Koshal and Malwa regions. They will be able to maintain their 2014 tally in Madhya Bharat region.
Apart from this out of 2 seats in Goa, 1 each will go to INC and BJP. Other two union territories will both go to BJP. That’s how the Western India Elections Predictions looks like.
Till now from the three regions it now looks to be a very tight race as NDA is at 214 seats and UPA and others are at 203 seats. So out of the predicted 417 seats NDA has got 214 seats and UPA plus others gets 203 seats. That 203 seats includes all other independents and other smaller parties. What needs to be seen is how many will leave or stay with UPA or NDA. BJP as per the predictions made needs 60 more seats from the available 126 seats to come from Northern India.
This is really going to the last stage and we will all have that climax after 2 weeks! Next week am taking a break from the predictions and my North Indian Predictions for the remaining 126 seats will happen in two weeks’ time!
Lok Sabha Elections 2019 Predictions – Eastern India
Tuesday it is and its Psephology again for 2nd week running. As promised this post will be concentrating on the Eastern India’s predictions for general elections 2019. As part of Eastern India, I have taken West Bengal, Orissa, Chattisgarh, Jharkhand, Bihar and North East states – Assam, Mizoram, Manipur, Tripura, Meghalaya, Nagaland and Sikkim.
West Bengal: Starting off with the most crucial state of West Bengal. Bengal is a Strong hold for the opposition and is a potential place for third front. West Bengal politics was in news in last few days for the havoc that we have witnessed in the Panchayat Elections. Though the people of West Bengal still believe in Didi – Mamata Banerjee – few sections of people are changing their view and we could see a major fight for seats. There are chances that Sourav Ganguly might get in as well. Not confirmed yet. There are 42 seats in total and this is divided into 3 regions. They are Gorkha land, Hooghly region and the third is the Burdwan region. In the three regions Gorkha Land is the only place where BJP is strong and is supposed to do well. Apart from this it will get one, two seats from other two regions. Problem for BJP is the absence of a strong leader in West Bengal.
Orissa: Not much to be spoken about this Biju Patnaik’s State which has vested power in Naveen Patnaik for almost 20 years now. Very much like West Bengal where BJP doesn’t have much to say, BJP is also not a big player here. But in last 2 years or so, BJP is making every effort to take the opposition spot vacated by Congress. Still there are some places like Bargarh, Sundargarh and Bhubaneshwar where BJP can smell the victories. Looks a tough fight for BJP and BJD will easily win this.
Chattisgarh: BJP is too strong here to lose and let the opposition parties win the battle. So, my predictions aren’t going to change from what it has achieved in its last elections. 10 of 11 is what BJP will get. In 2014 and in 2009 elections also BJP got 10 out of 11 seats here.
Jharkhand: Another easy state for BJP. In the power in this state since the time State was formed. Either as coalition or Single party. No major heart breaks with respect to anti-incumbency will be relief for BJP. Situations Looks like BJP will lose one of its seats to INC.
Bihar: Bihar is always unpredictable state because we have leaders like Lalu and Nitesh Kumar who are the best friends and best enemies as well. One cannot say if Nitesh will stay with BJP or change his stance. But as of now things look very good for BJP and this coalition of BJP and JDU will be the big win in the eastern India. There will be lot of swing that can happen where BJP will lose its seats to INC/RJD and RJD/INC will lose its seats to BJP. This can be crucial for BJP. Bihar is divided into 4 regions, the tirhut region which is adjacent to Nepal, the Kosi belt, the seemanchal region dominated by Muslims and the Magadh region which is the center of power with 17 out of 40 seats. Whoever does well in Magadh will take Bihar and this time too BJP-JDU combine is likely to do very well in Magadh.Things can change but as of now BJP looks like losing 2 seats to opposition.
North Eastern States: The Seven Sisters though have very less seats compared to other states. They will play big role in determining the winner in the Eastern India. Overall North East has 25 seats with highest seats coming from Assam. BJP has turned everything upside down in last 4 years and it has been sweeping in the assembly elections off late in north east. Assam, Tripura, Meghalaya and others. Expecting a big jump for BJP here, which will be a big add to their tally. Expecting BJP to score as high as 19 out of 25.
This is how the Eastern India Predictions look like with just less than a year to go for Lok Sabha elections. The tally after the overall prediction for Eastern India brings BJP 82 seats out of 153 seats while the INC sits at 21 and others at 50. BJP though is ahead of Others+INC in Eastern India by 9 seats, both Eastern and Southern India combined the tally stands at 122 compared to 163 for the opposition. If all the parties do come together BJP then this numbers look dangerous for BJP. Good news is when you compare BJP’s tally, it was 88 both East and South combined in 2014 but now it has jumped to 122. A big boost for BJP.
Next week I will be back with Western India, where there are no others. It’s a direct contest between BJP and Congress and in 2014 BJP literally swept every state and let’s see how many of it can they hold in 2019 and how much of a comeback Congress has made.
It’s Tuesday and it’s my post day. Very recently the NDA Government has completed its 4th year of ruling and they have just 1 more year left before the Lok Sabha elections 2019 take place. Many surveys and polls have been conducted on to see what can happen in 2019 and look at the party’s performance state wise. Last year around this time I had given the seats that can be won by parties as on that day. Starting from today, for the next one month I will predict the seats that BJP, INC and others will be winning in 2019 elections.
These predictions are not of any survey done by me nor a copy of any survey of any TV channel. This is based on the political situations that exist in those states as on today, the perceptions of people reflected trough various surveys and polls coupled with my analysis. I have divided this into 5 parts. The first 4 parts will focus on four regions of India and in the last part I will give an all India picture.
Today it is the turn of BJP’s less favored region of South India. South India is complicated with every state having its own dynamics and the party which is there in one state is not there in other state. Like TRS which is only there in Telangana, TDP and YSRCP in Andhra Pradesh etc. South India includes states like Telangana (17), Andhra Pradesh (25), Karnataka (28), Kerala (20) and Tamil Nadu (39). Union territories Lakshadweep and Pondicherry with 1 seat each. Total of 132 seats.
Telangana is the first state am going to predict. It has 17 seats in total and TRS, Congress, BJP, AIMIM and TDP are the parties contending. I give 10 seats to TRS mostly from North Telangana districts, 4 seats for BJP, coming from the City and other Urban places. Congress will have to limit itself with 2 seats from South Telangana.
Andhra Pradesh another Telugu State which had seen a more than half seats going to coalition of BJP and TDP in 2014. Now with TDP and BJP becoming deadly enemies on the issue of special status, expect a tactical understanding of BJP with YSRCP to teach TDP a lesson. This understanding will exist more on ground and will not reflect as an alliance. This will majorly benefit BJP as YSRCP looks much stronger to capture power in AP. I give 13 out of 25 seats to YSRCP, coming from Rayalaseema and Coastal Andhra equally and 4 seats for BJP coming from places like Vizag, Rajahmundry and probably Rajampet. TDP which won 15 seats last time will be reduced to 8.
Karnataka, state which had elections just few days ago has seen a roller coaster of elections. JDS and Congress now with the coalition have confirmed that they will be participating as one in the Lok Sabha Elections. Will that hit them back or help them is something to be seen. As per my fundamental study I feel that it is going to be a little boost to BJP. Expecting a two seat jump to 19 from 17. Major gains for BJP will come from Mumbai Karnataka where it will win 5 out of 6 seats, Coastal Karnataka where it will sweep all the 3 seats and Central Karnataka where it will win 5 out of 9 seats and also will win few seats in Hyderabad Karnataka and in Bangalore City and Mysore. Cong-JDS combine will be reduced to just 9 seats.
Kerala is the only place in South India where BJP had no seats for many years. But that changed in the assembly elections of 2016 where it won its first seat and got more than 13% vote share and it is expected to do well in the 2019 elections. This is going to be a big plus for BJP if they manage to get the seats I am predicting. I am seeing victory in 5 seats for BJP compared to nothing in 2014. To add a point, in the year 2014 BJP had 10% vote share which jumped to 13% in 2016. So, at the same pace if the vote share goes to 17-18% then they will be able to win 5 seats. These seats will come from North Kerala region of Kasargod, probably in Thrissur and Thiruvananthapuram in South Kerala.
Tamil Nadu – the state of confusion. We now have five big parties fighting out in this state. AIADMK, DMK, AIADMK, Rajnikanth’s new party, MNM of Kamal Hassan and the NDA which has parties like DK, DMDK, PMK and BJP. AIADMK with the amount of anti-incumbency is ruled out to win even one seat of the 39 seats. Last time Jayalalitha’s brand had given them 37 seats but now it’s really tough for them. Plus people voted for her as she put herself for the PM position in case if there is a hung parliament. It is going to be new players who will win it big this time. BJP will also make its inroads and win few major seats. Rajinikanth and Kamal Haasan are going to win it big this time. Rajinikanth with all his rural power will take highest number of seats, especially in South Tamilnadu. Rajnikanth will win 19 out of 40 seats mostly in Southern and Rural Tamilnadu, Kamal Hassan’s MNM will win 6 seats from Urban TN, BJP combine will win 7 seats mostly in western TN and Kanyakumari district. DMK is expected to get 7 seats mostly in Chennai city and North Tamilnadu.
Of the three union territories of Andamans, Pondicherry and Lakshadweep BJP will take Andamans and INC will take Pondicherry and Lakshadweep. So, here is the South India tally for this week.
Overall, if we see the tally goes to 132 seats. Out of which BJP is looking set to win 40 seats as compared to 22 seats that they have won in the year 2014. With the support of TDP they had 37. This time even without the support of TDP they are looking to make big gain of 18 seats.
That’s how the overall tally looks with BJP at 40, INC at 22 and others at 70. South India which isn’t favorite region for BJP has made good ground to gain the seats. It all depends on how the parities strategize and win more seats. Other parties will have huge role to play in the South Indian region.
In my next Tuesday post, I will focus on the Eastern states of Orissa, Chattisgarh, Jharkhand, Bihar, West Bengal and North Eastern states. Wait for it!!
It’s Just Another Nifty Correction or are we heading to CRISIS?
It’s been long time since I have written something on stock market and I think there is no other better time than today to write. All because of the
worries that are ruling the stock market. So, deviating from the promise that I made last week where I said I would give my predictions on Rajya Sabha polls, I am writing about markets. The reason is simple. In last one week many things have changed and many allies are deserting BJP and its not wise to predict anything as of now.
So, coming to the markets we have seen a lot of volatility in last one week. With Global Factors in negative plane and Domestic Factors adding to it the fall seemed to be immine
nt and it did happen. Investors need to very cautious at this point of time, because it is very crucial not to lose his patience and take a rash decision. I would say that this is worrying but it’s not game over yet. Let’s not panic because that will only make it worse for investors.
I have few points to discuss whic
h will make you to see the other side of the story. I have taken the point of analysis as the time when Modi came to power i.e. from May 2014.
Correction is Obvious for Long Term Growth
If you look at the table given in the image you can see that in the history of stock market every time after good bullish run we had seen a fall that is ranging from 10% to 15% on Nifty. When the stock market goes up trending by 25%-35% there is always chance of 10% correction minimum. So, the correction that we are seeing now is natural because after the
demonetization we have moved all the way
up by 40% from 7980 to 11120 and now is the time to cool down a bit.
Connecting Nifty 50, Bank Nifty, NSE Mid Cap 50 and BSE Small Cap 100
Nifty 50 is the major index that represents the Stock market of India. But there are also other Indices which are slowly gathering pace in the Stock Market. They are much riskier and have got lot of movement when compared to nifty. The average returns on Nifty for last 4 years are standing at 31.6% whereas the average fall is at -12%. Bank Nifty is with average returns of 46% and average fall of -16%, Mid Cap 50 with average returns of 45% and average fall of -13% and finally BSE Small Cap 100 with average returns standing at 53% versus fall of -14% average. That statistics shows that Nifty can mostly fall till 12% which is the lowest when compared to all other indices.
Crisis and the fall comparing to 2008 vs 2018
There are also voices which are talking about the fall going as deep as the 2008 economic crisis. In 2008 Nifty fell from 6300 in Jan to 2525 in October month. Making it a worst fall ever in the history with a fall of 60% in just 10 months. Coming to present situation, the patterns of chart look the same when compared to the 2008 crisis. But the factors that are there today are not that worrying as in 2008 and don’t carry huge weight to make the market crash as bad as 50%. The average fall of 10-12% is something that is surely acceptable and one should be able to take it.
All the voices talking about the fall due to NDA Govt and its policies doesn’t look strong. Because already in NDA Government Stock Market has seen three 10+% fall and seen huge recoveries. I would say that It’s just a correction and chances of big crash look low. That said, the target of 12,000 that we had thought of in the beginning of the year now looks very slim but its not impossible. If a 10% fall can happen in 2months then we have more 8 months for out target to be reached. So, never lose faith on the markets. Move cautiously, observe the fundamentals, evaluate the technical and use the Futures and Options wisely to make up for the money that you are losing on your portfolio!