BJP's possible comeback to power allows Sensex to cross 40,000 for the first time

NEW DELHI: Indian investors have high hopes on the return of NDA, as it was predicted during the massive surge post exit poll. If the NDA wins the polls, the benchmark indices S&P BSE Sensex and NSE Nifty, are expected to rally sharply. There is a possibility of the sensex breaching the 40,000-mark if BJP emerges as the single largest party. This can also give a raise to NIFTY, which is expected to hit record highs and cross the 12,000-mark.

However, as per the analyst the markets might be facing a glitch if the predictions of the exit poll, which gave BJP an absolute majority, don't stand out. The next government is said to be determined and scheduled to begin at 8AM.

Sensex ended higher by 140 points at 39,110.21 while Nifty remained above the 11,700-mark. While the widespread of the volatility remained in the markets, the investors seemed to be confident about the Narendra Modi-led NDA government making a comeback. But many brokerages said that markets could face heavy correction if there is a mismatch in the event, but eventually the focus of the markets will be shifted on fundamentals such as growth, global cues and company earnings.

Over the past few days, brokerages have also cautioned investors to go slow on the buy button until the results are clear. As the counting days commences volatility continues to remain on the higher side.