We Summarize the Views of Foreign Institutional Investors the Big Movers and Shakers of Indian Stock Market on the Exit Poll Results.
BOFA Merrill Lynch
Exit polls indicate advantage for BJP-led NDA. Expect 8% return by year-end on the Sensex. Sensex target at 25,500 on stabel Govt scenario. GDP growth likely to recover slowly to 5.4% in FY15. Expect $25bn of portfolio flows to get rupee to 57 – 58 levels. Expect rupee to settle at 60 levels on RBI intervention
Large-cap Buys: Maruti, ICICI Bank, SBI, ONGC, JPA, Ultratech
Mid-cap Buys: Eicher, Motherson, Yes Bk, Aurobindo
Underperforms: HUL, Tata Steel, Powergrid
CLSA on Exit Polls
Exit polls indicate NDA can form Govt without trouble. Even the lower end of poll meets market expectations. Flexibility with Mr Modi to pursue his growth policies. Strong Govt positive for investment plays
Top picks are ICICI, Axis, SBI, L&T, Ultratech, Maruti. Top pickshave potential of 30% upside
JP Morgan
Most exit polls project majority for NDA Govt. Govt formation will be straightforward if polls true. History suggests several paries will offer unconditional support. Pan-India support seen for the NDA in the exit polls
Expect further rally in markets on back of polls. Rupee appreciation pressures are likely to be more contained
Credit Suisse
Uncertainty on final verdict unchanged despite NDA surprise. BJP would retain most of the economically relevant ministries. Exit poll results will keep markets supported. Stay cautious on cyclicals currently
Goldman Sachs on Exit Polls 2014
Exit polls indicate BJP-led alliance to do better than expected. Majority to make room to potentially undertake meaningful economic reforms. See the exit poll results as positive for Indian assets. Have 3 months rupee target of 58.5 due to impoved portfolio inflows. The rally in long-end bonds could continue due to increased FII flows
CitiGroup
Better Chances of Opinion and Exit Polls being right in 2014. Investors’ perception of India has changed from ‘hated’ to ‘loved’ Positive election outcome would bode well for equities and bonds.
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