"After early polls showed that the BJP led NDA government is going to easily get the required 272 votes to win the election and hence, make Narendra Modi India's new Prime Minister, the markets rallied wildly with the Sensex jumping more than a 1000 points in early morning trading before ending the day 250 points up. The fall is most likely due to investors locking in profits after the huge surge in the morning, although it could also have to do with the expectations investors have on how many seats the NDA will actually grab and whether the BJP will, on its own, be able to grab the required 272 seats on its own.
That being said, consolidation is the last thing on the market's mind right now. We can expect the market to be bullish for weeks to come as the market fully digests the implications of a BJP-NDA led government let my Modi. Banking, infra, and retail can expect to see huge rallies through the end of May before consolidation finally kicks in. We can expect export driven stocks to remain flat as the Rupee possibly strengthens and IT firms realize that other sectors are bound to fare better under the new government's economic policies."
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