If the latest trends are anything to go by, the NDA looks all set to romp home with a comfortable majority. At the time of writing this, the BJP and its allies were leading in the 208 out of the 381 seats for which leads were available. And this seems to have lifted the mood on the indices as the BSE-Sensex is up a whopping 782 (3.1%) points with almost all the sectoral indices trading in the positive. BSE Mid Cap and BSE Small Cap indices are also trading strong with both up more than 1% each.
Most other Asian markets however have opened on a weak note. The rupee is trading at Rs 58.8 to the dollar at the time of writing.
NDA being on the brink of power, will of course be music to the ears of corporate India, hampered for months now by lack of decision making and absolutely no action on the policy front. The Sensex has already breached all time highs just on the basis of the result of exit polls and given how the current trends are, there's another very strong rally on the bourses today.
Investors however are advised not to get swayed by the sentiments and would do well to invest only in those stocks with strong fundamentals and sensible valuations. After all, no matter what Government comes at the centre, it won't have a magic wand to change things overnight. And therefore attention has to be paid to the fact that valuations don't really run ahead of the fundamentals.