Delhi polls affect stocks |
In India, a very intense and close campaign for the Delhi assembly elections came to a close on February 5. Elections take place on February 7 and the results will be out February 10. The political heat is affecting the stock market. It is a very tight contest between Arvind Kejriwal`s Aam Aadmi Party and the Narendra Modi led BJP. With a no holds barred contest, worried investors have unnerved stock markets. The possibility of an AAP win is giving investors the jitters. They are afraid of the worst if a government with a socialist agenda comes to power in the capital. Market analyst Hemindra Hazari has compared Kejriwal`s AAP with Greece`s hard left Syriza party, which has emerged victorious in the recently-held elections. AAP`s earlier policies have been anti-corporate. AAP`s policies such as more subsidy on power and water and its opposition to some reforms such as foreign direct investment in retail, have struck a sour note with investors. Analysts emphasize that anti-AAP sentiments have contributed to the recent dip in stock markets. The Sensex is down nearly 700 points or 2.5 per cent in the previous four sessions, coinciding with opinion polls that have predicted that AAP could win.
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