Bi­har poll re­sult un­likely to hit mar­ket sen­ti­ment; pas­sage of bills, re­forms key

Hindustan Times (Patna) - Live - - Business - HT Cor­re­spon­dent let­ters@hin­dus­tan­

While the Na­tional Demo­cratic Al­liance’s (NDA’s) loss in the Bi­har elec­tions could pro­vide some short-term hic­cups for the mar­ket, in the long-term the fo­cus would be on the pas­sage of key bills and the gov­ern­ment’s re­form mea­sures, an­a­lysts and mar­ket in­ter­me­di­aries said.

While the BSE Sen­sex ended marginally lower by 40 points on Fri­day (Novem­ber 6), it hit a one-month low of 26,304 on Thurs­day (Novem­ber 5) as in­vestors went on a sel­l­ling spree, fear­ing that a pos­si­ble BJP de­feat in the Bi­har as­sem­bly elec­tions would put the Modi-led gov­ern­ment on the de­fen­sive. This could then de­lay the pas­sage of key bills such as GST, ap­point­ment of a

real esate reg­u­la­tor, and push back eco­nomic re­forms.

“I don’t think in­vestors are overly wor­ried. There can be some im­me­di­ate ner­vous­ness but in­vestors have re­alised that ev­ery state elec­tion can­not be a ver­dict on the gov­ern­ment,” said Rashesh Shah, founder, Edel­weiss Group. “In­vestors are hop­ing that the gov­ern­ment will fo­cus on re­forms and stick to the man­date, which is to push growth and cre­ate jobs.”

Bri­tish financial ser­vices ma­jor Bar­clays, how­ever, said In­dian financial mar­kets were cau­tious ahead of the poll re­sults, and a re­sult against the BJP should lead to mar­ket weak­ness. “We feel that to­day’s re­sults could be a ma­te­rial sen­ti­ment damp­ener in Mon­day’s early trade as this might be per­ceived as an ad­di­tional stum­bling block to the cen­tral gov­ern­ment’s re­form agenda.”

Mahin­dra Group CMD Anand Mahin­dra said in a tweet: “What’s won­der­ful about this coun­try is that elec­tion vote-count­ing still at­tracts a larger au­di­ence than Bol­ly­wood or a cricket match.”

Stat­ing that the Modi gov­ern­ment should now fo­cus on its eco­nomic agenda, Bio­con CMD Ki­ran Mazumdar Shaw said: “With Bi­har elec­tions be­hind us, Modi govt can now give un­di­vided at­ten­tion to the eco­nomic agenda... Hope the Op­po­si­tion aligns with the gov­ern­ment and the elec­torate,” she tweeted.

“I am sure the new gov­ern­ment will ded­i­cate it­self to ful­fill­ing the as­pi­ra­tions of the masses by lead­ing Bi­har to a new era of in­dus­trial de­vel­op­ment, eco­nomic growth and pros­per­ity,” said Su­mit Mazumder, pres­i­dent, industry cham­ber CII.

Most of the im­me­di­ate ner­vous­ness is linked to key bills as the rul­ing coali­tion does not en­joy a ma­jor­ity in the Ra­jya Sabha. To pass the bills, the gov­ern­ment needs the ap­proval of both Houses of Par­lia­ment.

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