After the Sensex and Nifty soared to fresh record highs following exit polls indicating an easy victory for PM Narendra Modi, stock market veteran Rakesh Jhunjhunwala said that the NDA could win up to 300 seats. The ace investor said that after seeing the range in the exit polls, the BJP could get 250 seats, and the allies could get another 50, so in all, would be 300 seats for the NDA, plus or minus 10. Sharing his view on the direction of the stock market going forward, Rakesh Jhunjhunwala said that if NDA gets a clear majority, 10,750 to 11,000 would be the bottom for stock markets.
According to the expert, while the stock market returns will be good, Nifty may not return 30% like it did in 2014, after Modi’s win. “The stock markets have already priced in some kind of dispute between US- China. I think Nifty made a bottom at about 11,000. How high will it go, how long will it take, that only posterity can tell. We can know the direction, and an approximate high or bottom, we cannot predict other things. I don t think the market will return 30% this year. But, markets are going to be good,” ace investor Rakesh Jhunjhunwala said in an interview to CNBC TV18.
Sharing his key expectation from a likely NDA-2, Rakesh Jhunjhunwala told CNBC TV18 that the performance of the Narendra Modi-led government will be better in the second term. “Now, after being at the helm for 5 years, Mr Modi has got a team, and the confidence would be high after having won two elections. So, he could take more bold decisions,” Rakesh Jhunjhunwala told the channel. I expect this 5-year term to be better because the expectations have been moderated but the performance is likely to be better, he added.
Meanwhile, the Sensex and Nifty have retreated on Tuesday afternoon, after hitting respective fresh record highs. The Sensex hit a new record high of 39,571.13, while the Nifty soared to a new high of 11,883.55, buoyed by the robust exit poll expectations for the NDA government. HDFC, RIL were top gainers jumping up to 3%. Continuing their robust gains from yesterday, private sector banks Axis Bank, HDFC Bank, Kotak Mahindra Bank hit a new lifetime high on Tuesday. HDFC Bank shares hit a fresh record high of Rs 2,449.45, while HDFC shares gained nearly 3% to hit a fresh record high of Rs 2,178 on BSE. Yesterday, the Sensex and Nifty registered their best day in 10 years, buoyed by the optimism of exit polls.