Modi winning 2019 polls: Market has priced in 2nd term for BJP, says UBS

A UBS study of market performance a year before elections since 1996 shows the Nifty has gained four out of six times

The 2019 general elections are still about a year away, but markets seem to have already priced in a second term for the incumbent Narendra Modi-led National Democratic Alliance (NDA) government. In a recent client note, brokerage UBS said while most investors had assigned a ‘very high probability’ of Modi winning the 2019 elections, markets had already priced this in.
 
A K Prabhakar, head of research, IDBI Capital, agrees with the brokerage. “With the valuations already so expensive, we can easily say that markets have priced in Modi's victory. Political stability in the country is a major reason for rising valuations,”