Ecstatic Rally in Dalal Street....

Before the poll results,Economy was expected to go up and down on a see-saw,swing like a pendulum and experience a  somersault as welll....
BJP and AAP after reflecting an overwheling majority,took sensex to a level of 21326.42 up by 329.82 with an intra day increase of 487 points.

The outcome of election results are in-line with what the global brokerages have been hoping for.
Stocks belonging to the capital goods, infrastructure and power sectors are likely to benefit from new policies to kickstart growth. Groups like Adani and Reliance and various infra and power companies would get a chance for job creation and infrastructure revival.
Moreover they will focus on the stalled power projects.and already Ambanis and Bharti Airtel have entered into an collaboration partnership of 4g Services.
However Banking Sector is likely to benefit the most,as in even today ICICI Bank(+5.16%),HDFC Bank (+4.5%),Bank of Baroda(+2.09%),Axis Bank(+1.72%)
Talking about the Rupee Rally,it got strengthened after taking cues from capital market and a lower current account deficit(imports-exports) which is expected to fall to 3 %.Foreign institutional investors invested Rs 1,100 crore in the equity market today. RBI has mobilized $34 billion from the swap window under foreign currency non-resident deposits funds(Fixed Rate 3.5 % p.a.) and overseas bank borrowing.

Though rupee is likely to gain from the inflows and gets stronger.
Now the question is "Will the phenomena called "NAMO" and "Arvind Kejriwal" will bring a spectacular change in India or market is reading just too much...."

Receiving a tinge of sarcasm from people around e.g just as P Chidambaram did by contradicting Modi's statment of increasing inflation due to imported gold which worsens our Current Account Deficit.As Chidambaram believes it is because of corruption.

Apart from this India has been seen by global investors to invest their money aggessively in India,GDP growth better than the second quarter,fundamentals of global economy have improved e.g Bond Buying ($ 85 billion) programme by U S federal,7 Percent Unemployment rate.
So to conclude I would say one should be cautious while investing and also we have our eyes on
events such as the RBI monetary policy in the third week of December and the imminent Fed tape which would impact the market cycle again..

Take care...Keep Smiling... :)