Tag Archives: Modi

Indian Stock Markets are on a roll as Nifty rallies 2.5% in the last 4 days and 6.75% in the last 3 weeks!

Hello Everyone, this post is a continuation to the last week. In the last week, I had written and explained about the movement of the NIFTY during the General Elections 2014 and compared them to the present scenario. Nothing has changed when it comes to the political decisions are concerned in the last week, but the mood of the market has entirely changed. Last Tuesday NIFTY closed at 10987 and today it closed at 11301 which is 2.85% up move. The only big event that has happened in last one week is the release of election dates for Elections 2019.

Election Commission has decided the dates for the Lok Sabha Elections 2019 on Saturday. Seven phase election is scheduled to begin on the 11th of April and conclude on the 19th of May. Counting is scheduled to be held on May 23rd which is a week later than the last two General Elections. This week has begun on a very different note with NIFTY going up by 1.2% and 1.19% on both the days. This kind of move is only possible when there is a lot of buying in the Delivery channel. Delivery buying is the type of buying where the stocks are bought for investment purpose. Usually, delivery buying is for a minimum of 2 weeks to 3 months.

But should there be a rally before the elections and the important results?

Simply because markets are the leading indicators for the Indian economy. Leading indicator here means something which has the hint of future and tries to jump into the future for a better valuation. Markets everywhere read the future and they trade accordingly.

Who is this Mr/Ms Market?

Obviously, it is the Public. The market is we the people of the country. This includes the High net-worth individuals, individual investors, foreign investors, mutual funds etc. So it is basically the people’s opinion. Keeping it simple, we can call the investors as Domestic and Foreign. Right now we can say that 70% of contribution comes from Foreign investors and 30% comes from Domestic investors. That makes it more clear that the Foreign investors believe that there is positive news coming from the elections. The positive news here at the moment is the re-election of NDA to power.

That proves that it’s the people who take the market forward and these people include all kinds.

How long will this rally Sustain?

Going by the past rally during the General Elections 2014, it was seen that NIFTY was at 6000 at the beginning of February month and on the day of results NIFTY was trading at 7142. This is an astonishing growth of 19% in just 3 and a half months. Going by this simple equation, NIFTY has gone from 10600 in the middle of February to 11320 in the middle of March, which is again a 6.75% growth in just 1 month. With the results being pushed a week we can conservatively expect the Markets to hit 12,000 minimum on the results day. This will mean the Markets will move another 6% up from tomorrow. I repeat 6% is minimum growth it has got all legs to hit 10-12% as well. All this is on the narrative that BJP will come back to the Power in 2019 Elections.

What’s in the store for Investors?

NIFTY 50 Stocks and their returns during build up to General Elections 2014 and General Elections 2019.

Returns, High Returns!! Yes, in the last post also I have discussed how the stocks have made big money from March 2014 to May 2014. The average returns of the portfolio of the 10 stocks from NIFTY gave 31.38% in only 80 days. The same portfolio when calculated this year from Feb 28th till date i.e. 12th March has given 6.7% average returns. By going with the past trends it’s clear that you can make a minimum of 20% returns. Don’t wait and invest in the markets. Especially in the large-cap NIFTY stocks for safe returns. My feeling is obviously to invest and make ‘BIG’ money by the time counting day comes. #NiftyNeedsNamo

Okay! That’s about the Markets and Elections. If this is how interesting the Elections are turning out to be, how can one miss the action? I wouldn’t want to and I hope there are more like me. So, for the next 10 weeks leading to the counting day of Lok Sabha elections 2019, I will be writing posts relating to Elections 2019 for two times in a week. Once on a Tuesday and the other one on Friday. In these posts, I will be writing about the situations, opinions polls, who’s ahead and who’s losing, what each leader are saying and doing, and analyse the mood of the nation leading up to next 72 days!

Stocks that could be Big Winners for next 6 months, but just one condition!

General elections 2019 are just around the corner and the news channels have started the countdown for the big day. This time the battle is expected to be a cliff hanger and a last ball nail biter. There have been many blame games, dashes, cheap tricks, low level comments made by every possible politician. Unfortunate things have happened in the country in the last 1 month and India is fighting it hard and trying to compensate for the loss that we had. This post I will jump back to 2014 and bring out some interesting data oriented analysis from the Stock Market field to show how the stocks predict the winner much before the Exit Polls could.

Firstly, today NIFTY had a big rally after having a waiting game for last few days. Today NIFTY went up by 123 points to close at 10987, coinciding fact that on the first Tuesday of also 2014 NIFTY went up 125 points to close 6526 points.

Few points:

  1. NIFTY50 went up by 18.4% from March 2014 to May 2014 which is just 2 months and barring this year which has been a volatile year, NIFTY since BJP win gone up by 60% till March 2018.
  2. Stocks like Maruti Suzuki went from 1582 to 2386 which is 50% uptrend in just 2 months. The same stock since the 2014 Election is up by 271%.
  3. Random 9 NIFTY 50 stocks which have gone up by 40% and above.
  4. Maruti – 271%
  5. HDFC Bank – 169%
  6. HUL – 137%
  7. HDFC – 100%
  8. Cipla – 65%
  9. Bajaj Auto – 50%
  10. Axis Bank – 43%
  11. L&T – 43%
  12. ICICI Bank – 43%
  13.  Now let’s look at the same stocks and their performance from March 2018 to till date
  14. Maruti – (-19%)
  15. HDFC Bank – (-4%)
  16. HUL – 29%
  17. HDFC – 11%
  18. Cipla – (-18%)
  19. Bajaj Auto – (-2%)
  20. Axis Bank – 36%
  21. L&T – (-10%)
  22. ICICI Bank – (-4%)

Looking at the data of the stocks returns, it’s clear that there is a big uptrend in the stocks right after the elections. Interestingly well before the results could come stocks have rapped up very high returns. 2 months saw average of 25% returns for a Nifty50 stock with SBI making highest of 80% returns, followed by the stocks like Maruti, Axis Bank, ICICI Bank and HDFC Bank.

This small study is to bring out the possible stocks that could return good money if invested. Today was the day of a sign by Market. It all depends on whether this is a real trend or a false trend. It’s all going to be real tough to predict the winner of the 2019 elections but one always knows that the ruling party has got higher chance than any other party. As we are looking at the behaviour of the stock markets in the last 5 years and the last 2 months before elections. It’s also important that the investor decides the right stock which is only possible through proper study and obviously a little intuition and finally risk taking ability. Right now, the risk rates are very high and so will be the returns.

The condition for the above stocks to perform well and fetch you minimum of 20% returns in 2 months is victory for the ruling party.  Don’t hurry up and take positions tomorrow. Wait at least for a week to see if Nifty is really on an uptrend. If Nifty sustains and remains above 11000 then its time to re-invest again. I wold tell you how to do it in my next Tuesday post. Till then observe the trend.

What’s the outlook for Indian Stock Markets for the next 3 months?

What’s the outlook for Indian Stock Markets for the next 3 months?

Politics is one of the major fundamentals in the movement of the Stock Market. Generally, markets react very sharply to any kind of unfavourable measures taken by the Govt for the economy. So when it comes to elections, the moment the ‘markets’ don’t get the desired result the reaction would be severe to watch. There are days when Stock markets have shown rapid upwards and downwards movement riding on the outcome of the elections. Till early 2012 stock markets were solidly behind UPA led by Congress. But a series of scams that took place later changed the sentiment and from mid-2013 it wanted the NDA led by BJP to come to power.


The measurement starts from February 2014, exactly 5 years ago when there were opinion polls that put NDA ahead of UPA. That is where Nifty started its journey from 6000. This mark of 6000 was reached way back in 2008 and from then on Nifty was stuck there. By the time results came towards the end of May Nifty scaled 7000. Then the victory of BJP in Maharashtra, Jharkhand and Haryana in late 2014 pushed it to 8000 mark. Just before the results of Delhi and Bihar in March 2015 Nifty scaled 9000. But the losses for BJP in both the states pushed Nifty back all the way to 7000 and from there it started its journey back again upwards. Just before demonetization, Nifty scaled 9000 again November 2016 but it took the massive victory of Uttar Pradesh in March 2017 that made Nifty to capture 10000. The subsequent victories in Gujarat in November 2017 and Karnataka in early 2018 pushed Nifty to 11000 mark. But that was the end. The losses in Madhya Pradesh and Rajasthan brought it back to 10500 levels and now we are back to the situation again we started 5 years ago, with Lok Sabha elections, just around the corner.

Here are the dates of different elections in the past for your reference.

2014 May – General Elections
2014 November – Maharashtra, Haryana & Jharkhand
2015 March – Bihar & Delhi
2016 November – Demonetization
2017 March – Uttar Pradesh
2017 November – Gujarat
2018 April – Karnataka
2018 December – Madhya Pradesh, Chattisgarh & Rajasthan

If the things really turn out to be negative for BJP and if so-called 3rd Front supported by Congress forms the Government, we are to see a big fall in the markets and NIFTY could well go to 6000 mark yet again. This 6000 mark is something that Nifty tested in 2008, 2010 and 2014. Now we might go back to where we have started. Even if Congress forms a minority Govt also thing won’t be different and we might test the 6000 levels. In another scenario, if things change for good and BJP starts gaining its momentum in the last few left out days, with the mood of the Nation NIFTY will also react positively and it can hit 11,000 after the budget. This is only because of a positive feeling about the Govt.

Once the results come in for the BJP then we shall see the NIFTY moving all the way towards 12000 and by the time Modi takes the oath again, he will be welcomed by another all-time high of 12000 on Nifty, just like how it welcomed Modi in 2014 with an all-time high of 7000! So, interesting 100 days ahead of us!

General Elections 2019! Mid Year Predictions – Western India Region #LokSabha2019

 

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!

Till then, keep waiting…keep counting!

General Elections-2019! Mid Year Predictions – South India Region #LokSabha2019

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.

  1. 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.
  2. 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.
  1. 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.
  2. 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.
  1. 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.

Party 2019
BJP 40
INC 22
Others 70
Total 132

 

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!!

Market Setup 8th December

Markets and News!

Week started on a bad note but ending on a good note thanks to that monster rally we saw yesterday. Looks like BJP is pulling ahead faster and faster to the position of advantage in Gujarat election. Things are looking much better for BJP now and 110 seats which was looking distant dream is looking a very much probability now. Added to this the global positivity with US ending green and Asia in full green India will start positive today. The fundamentals are also supporting now and that is the great news.

The big news of today is Govt’s announcement of amendments in Electricity laws. According to the new law, uninterrupted power is the right of everyone and this could be a game changer. From March 2019, uninterrupted power supply is a right of everyone and unnecessary load shedding can lead to penalizing the power companies. This will auger well for many stocks in power and manufacturing sector.

Futures and Options!

In derivatives market, some bullishness has appeared as call shorting has suddenly stopped. Lot of unwinding of short calls was seen at 10200 and 10300 calls and 10100 put is being shorted. The premium of 10100 put nearly halved from 150 rupees at the beginning of the day to 88 rupees at the end of the day. Nearly 1.2 lakh contracts were built there. That means the put call ratio has started to go up. From 1.11 at the beginning of the day it went up to 1.19 at the end of the day.

On the IPO front Shalby hospitals did some work yesterday and the IPO closed at 2.8x with NIIs going big time to buy this. The NII quota remained unsubscribed while QIB oversubscribed by 4.3x times. I expect a weak start to this IPO when it lists on 15th December. On the other hand Future supply chain is also 0.74x subscribed till yesterday and today is the last day for the IPO.

What is the NIFTY strategy for the day?

If you have taken a long position yesterday, keep it intact. If you have avoided, then its a good chance to go for a long position. NIFTY will open around 10170 levels and any dips towards 10150 should be used as an opportunity to buy. Keep a target of 10400 for Gujarat and it will be reached if you have patience. If any calamity occurs inbetween you can always. Exit!