Betting big on exit polls is risky: Investors have been stumped before

Investors have thrown their weight behind exit polls, predicting the NDA’s victory, with the benchmark indices logging record single-day gains of nearly 4 per cent. However, betting big based on exit polls is risky.  

In a note, Motilal Oswal Financial Services has highlighted how exit polls have been off the mark in two of the previous four occasions, catching many investors off guard. 

While Monday’s buying signals that investors have priced in a BJP victory, experts advise retail investors to wait till the final outcome. A look at what exit polls have predicted since 1999 and how markets have behaved