Why market has taken BJP's election setback in its stride

Arun Kejriwal, founder at Kejriwal Research & Investment, says the trends suggest the so-called Mahagathbandhan has not taken-off at all and this is something market has liked.

After sliding nearly 500 points in the opening deals, the domestic equity market pared all its losses and later swung into the positive territory on Tuesday, signalling investors are not too unhappy with the results and they are seeing a light of hope. The only uncertainty was the sudden resignation of RBI Governor Urjit Patel, which triggered a knee-jerk reaction in the morning. 

Counting of votes in five states is underway. Congress candidates took significant lead in BJP-ruled Chhattisgarh and was inching ahead of the BJP in Rajasthan. The two parties were locked in neck-and-neck fight in Madhya Pradesh. Trends