The Congress will likely unseat the BJP from power in Rajasthan while remaining locked in a close fight with the saffron party in Madhya Pradesh, a poll of five major exit polls showed.The exit polls today came after voting ended in Rajasthan and Telangana, the last of the five states that went to the polls in this batch of elections.
Results of elections in the five states will be released on December 11
Exit polls predicted close contest between Congress, BJP in Madhya Pradesh, Chhattisgarh
Exit polls showed Congress will likely unseat BJP from power in Rajasthan.
A neck-and-neck contest between ruling BJP and the main opposition party Congress could spell trouble for markets, say experts based on the recent Exit polls,Most of the Exit polls suggest that Congress is likely to make a comeback or at least give a tough fight to the ruling BJP in Chhattisgarh, Rajasthan as well as Madhya Pradesh.
The exit polls today, offer a glimpse into what may happen on the counting day. Here is what a poll of exit polls showed:-
The Madhya Pradesh election contest is likely to go down to the wire. Literally down to the wire. An average of five exit polls predicted that the Congress would win 110 seats while the BJP would win 109,
The BJP has been in power in Madhya Pradesh for 15 years and it seems that the anti-incumbency wave has hit home in this assembly election.
If the exit poll results hold true, then Rajasthan looks set to continue a recent tradition of alternating governments every five years.An average of five exit poll put the Congress at 113 constituencies in the 200-seat Rajasthan assembly. The BJP, currently in power, was predicted to win 77 seats.
The Congress will wrest Chhattisgarh from the BJP, which has been in power in the state for 15 years, if the exit poll trends hold true on counting day.The Congress is predicted to win 46 seats -- exactly the majority mark -- in Chhattisgarh, according to an average of five exit polls. The BJP, on the other hand, is predicted to win 41.Meanwhile, the alliance of Ajit Jogi's Janata Congress and Mayawati's Bahujan Samaj Party is predicted to win six seats.
K Chandrashekar Rao will remain the chief minister of Telangana, exit polls predict. Rao's Telangana Rashtra Samithi is predicted to win 66 seats, six more than the halfway mark, according to an average of four exit polls.The alliance of Congress and Telegu Desam Party is predicted to win 46 seats. The BJP, which is looking to increase its presence in Telangana, will be unable to win more seats than it currently has, the exit polls suggest. An average of four exit polls has the BJP winning five seats.
The Congress is losing its only state in the Northeast, if the exit poll's prediction holds true.The Mizo National Front, which is part of the BJP-led Northeast Democratic Alliance, is predicted to be the closest to forming government in the state. An average of two exit polls has the MNF winning 19 seats in the 40-seat Mizoram assembly. The Congress, which is currently in power, is predicted to win 13 seats.
EXIT POLL'S IMPACT ON MARKET
Weak global markets and uncertainty over the outcome of state election results sent Indian markets sharply lower today.
The Sensex slumped as much as 657 points at day’s low while Nifty breached 10,500 levels. In afternoon trade, the Sensex was down 700 points at 35,3116 while Nifty traded at 10,529, down 1.5%.
Exit polls result indicate a tight race between BJP and Congress in Madhya Pradesh and Chhattisgarh and an edge for the Congress in Rajasthan. The election results for five states Rajasthan, Telangana, Madhya Pradesh, Mizoram and Chhattisgarh will be announced tomorrow.
The rupees fell sharply today to 71.28 a dollar as compared to Friday’s close of 70.82.
The broader markets were also under strong selling pressure BSE midcap and smallcap indices also falling nearly 1.5% each.
Among 30 Sensex stocks, 25 stocks traded in the red. PowerGrid, Sun Pharma, Tata Motors, Bharti Airtel, Adani Ports, Asian Paints and Reliance Industries were down between 2% and 4%.
Foreign investors offloaded close to Rs 400 crore from the domestic equity market in the past five trading sessions amid weakness in global equities due to the arrest of a high-profile Chinese executive.
Further adding to concerns for the Indian markets, oil prices rose today, extending gains from Friday when producers club OPEC and some non-affiliated producers agreed a supply cut of 1.2 million barrels per day (bpd) from January. Brent crude edged up 0.2% to $61.79 per barrel.
WHAT INVESTORS SHOULD DO..?
Analysts’ suggest investors to buy put options if the market opens lower on Monday to hedge their long positions while some are advising clients to remain in cash at least for the next 3-4 days.
AK Prabhakar, Head of Research at IDBI Capital said that we have advised to stay out of trading for 3-4days as volatility will be very high.