Boston, MA 05/12/2014 (wallstreetpr) – The shares of HDFC Bank Limited (ADR) (NYSE:HDB) surged to a record level of nearly 5% on Friday as a part of broader market rally in the Indian ADR stocks, which were derived by the positivity back home.
Election Results This Week
The Indian stocks surged higher on Friday on speculations that the results this week would bring the main opposition party, Bhartiya Janata Party (BJP), to power. The rally in Indian stocks come after the market traders bet that exit polls scheduled on May 12, followed by poll results on May 16, will elevate market swings. The Indian benchmark meter is fuelled by the biggest bets by the investors that BJP’s Narendra Modi will shape the economic growth of the country, which is at lowest in a decade. The analysts and investors are of view that the Opposition party would support better than the Congress led governments, which have been in power for the last decade.
Alex Mathews, who is head of research at Geojit BNP Paribas Financial Services Ltd, said that there is a lot of basket-buying and the rally will lead to more legs as the result day, May 16, comes closer. Furthermore, as per a survey conducted by Bloomberg that covered 19 brokers and investment advisory, the surge in Indian stocks would extend further if BJP wins more than 266 seats.
Exit Poll Today
On Monday, the Indian Benchmark Index, Sensex is already witnessing its biggest climb by 2% as the elections wind up Today evening. The index could surge or slide by 5-10% depending on the early set of exit poll results indicating is a stable or unstable coalition will take over in New Delhi. The investors and analysts. Gaurav Dia at Sharekhan said that the pre-poll result rally will get flattned out if the exit polls do not confirm with the expectations of the Dalal Street. Dua added that the market is cheerful not only because of Narendra Modi, but due to departure of the present Congress led coalition party that is responsible for graft scandals, slower growth and highest fiscal retail inflation.
