- Exit polls
- Oil price, Exports and Trade Deficit
How are the Indian and global economic environments affecting the financial markets?
Exit polls across the board, though doubtful in their accuracy, predict a second term for the incumbent NDA government. This should be encouraging for the markets because of expectations of continuity of reforms and market-friendly policies.
Oil price is firming up because of the tense US-Iran standoff. This is pressuring India’s trade deficit especially when exports are uncertain to grow due to the tentative global economy.
What to expect from the markets next week?
The financial markets will closely follow the election results due on May 23rd and the US-China and US-Iran situations. Foreign Institutional Investment (FII) is continuing to push the markets up. Should oil price rise, it would put pressure on the rupee.