UP Election Results 2022: How poll results will impact stock market today

PM Narendra Modi-led Bharatiya Janata Party (BJP) is likely to win the key electoral battle of Uttar Pradesh, exit polls suggest. The results of counting of votes today are likely to impact the stock market in the near term, say experts.

Meanwhile, Sensex was trading 1,700 points in pre-open today indicating a bullish start  to the equity market on signals of easing tensions between Russia and Ukraine and  exit polls results at home. On Wednesday too, Sensex and Nifty closed higher for the second straight session after exit polls signaled that Bharatiya Janata Party (BJP) looked set to retain power in the key electoral battle of Uttar Pradesh.

Sensex ended 1223 points higher at 54,647 and Nifty gained 331 points to 16,345. Asian Paints, Reliance Industries, Bajaj Finance and IndusInd Bank were the top Sensex gainers, rising up to 5.56 per cent.

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Here's a look at what experts said on the likely impact of election results on the stock market today.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services,"Investors will watch out for the state elections result on Thursday. Any positive outcome in favour of BJP will add to optimism in the market. However, one needs to remain cautious in coming days on account of, ECB and US Fed meeting."

Prashanth Tapse, Vice President (Research), Mehta Equities said, "We will see if the ruling BJP gets a clear majority in Uttar Pradesh. Nifty is aiming its 200 DMA at 16953 mark, while weakness could be seen below the psychological 16000 mark."

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Santosh Meena, Head of Research, Swastika Investmart  said, "On the domestic front, the outcome of the UP election will be an important event for the market however it will have an impact for only 1-2 days. On the downside, 16200 will be immediate support while 15900 will be the next important support.

Bank Nifty also gives follow-up of bullish piercing line candlestick formation however 34000 is an immediate and critical hurdle; above this, we can see a further short-covering rally towards 34500-35000 levels. On the downside, 33,300 is an immediate support level then 32,500 is the next important support level."

Vinod Nair, Head of Research at Geojit Financial Services said, "The domestic market is also reacting positively to exit polls and in anticipation of in-line state election results. In the near term, the domestic market will trade as per the positive or negative surprise in the state election results and global trend."

AR Ramachandran, Co-founder & Trainer, Tips2Trades said, "Even though state election results have no direct impact on stock markets, a clear mandate to the BJP in Uttar Pradesh would be perceived as a strong indication that 2024 Lok Sabha elections would also be a clear mandate in terms of economic policy framework.

However, a defeat in a big state like UP for the BJP might slightly dent sentiment and make the 2024 elections a more open & indecisive contest leading to volatility."