Stock Market News: Voting for the fourth phase of the Lok Sabha elections has been done. Stock market investors seem to be on alert mode as polling percentage falls despite all efforts of the Election Commission. The mood of foreign investors is particularly bad regarding the Indian stock market. Due to which the atmosphere of the stock market also seems to have changed.
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Investors are the most disappointed in a decade
According to a report in the Economic Times, investors fear that Prime Minister Narendra Modi-led NDA may get fewer seats in the Lok Sabha elections than previously estimated. Over the last decade, foreign investors seem to be the most disillusioned with Indian stocks. Bloomberg data shows that investors are placing more emphasis on selling stocks but less on buying. Net short positions are currently at their highest level since 2012, according to the report.
4 billion dollar withdrawal
The bearish conditions in the derivatives market come at a time when foreign investors have withdrawn nearly $4 billion from Indian stocks since the start of April. Foreign investors are believed to be wary of the election results. This sentiment comes after a recent drop in voting percentage. There is speculation that the declining performance of the NDA coalition led by PM Modi may hamper its ability to carry out policy reforms including infra and manufacturing.
Expert estimate
The drop in polling percentage has raised concerns about the BJP-led NDA’s projection of 400 Lok Sabha seats. However, there are no specific reasons behind the drop in voting percentage. Analysts and election observers attributed the trend to several factors, including the ongoing heat wave across the country and the lack of a broad emotional issue to unite voters. Despite this, experts are hopeful that the NDA can go ahead with the possibility of repeating 2019’s performance or going slightly higher.