Billionaire investor, trader and market expert Rakesh Jhunjhunwala concurred with what most Lok Sabha election exit polls suggested following the final phase of voting Sunday and said that the Narendra Modi-led National Democratic Alliance will return to power with a landslide margin.
In an interview with CNBC-TV18, Jhunjhunwala estimated that the NDA will hit the 300 mark, with an error margin of 10 seats. The Warrren Buffett of India added that not only will the new government perform better than it did in last five years, but the markets would react favourably to the election result as well.
“I think expectations in the second term are moderated and the results are going to be far better than the first term,” he was quoted as saying.
Jhunjhunwala also indicated the direction in which the market would be heading in case of a second term for the Modi government and said, “I think if NDA gets clear majority then 10,750 to 11,000 is the bottom."
Talking about global cues, the investor explained that the ongoing trade war between US and China, along with the faltering relations between US and Iran, is also likely to impact the market.
While he did not believe the market would give returns of 30 per cent this year, the returns, Jhunjhunwala said, would be good nevertheless.
On May 19, most exit polls predicted thumping victory for the Modi-led NDA alliance and a convincing majority for the BJP. The News18-IPSOS exit poll said the BJP would get a single party majority and win 276 seats, while the NDA’s tally in the lower house of the parliament would reach 336. The IPSOS poll predicted that the Congress on the other hand, would get only 46 seats and the UPA 82.
Riding the exit poll euphoria, the Sensex topped the 39,000 mark on Monday, while the Nifty reclaimed 11,750 points, posting its biggest one-day gain. The S&P BSE Sensex ended the day 3.75 per cent, or 1,422 points, higher at 39,352 and the Nifty50 gained 421 points, or 3.7 per cent, to settle at 11,828.