17 May 2009,
Circa 2004: As red flags swept parts of India, there was bloodbath on Dalal Street. The investors' fear that a powerful Left will call the shots at the Centre led to the sensex recording one of its biggest plunges. Circa 2009: With the Left decimated, the Street is gearing up for one of its best sessions in years. Some market players see the sensex rallying up to — hold your breath — 10% or 1,200 points.
The stunning victory of the UPA government is expected to help extend the 10-week-old rally that has added over 4,000 points to the 30-share BSE benchmark, from its 2009 low at 8,160. Most market players believe the UPA's continuation in power with a stronger majority, but without the Left's support, could help improve the fiscal situation.
FIIs are also expected to pump more money into the Indian markets, through equity and debt. And, rupee is expected to strengthen against dollar. This better FII inflow, forex market pundits said, will take rupee higher in both short term as well as in the long term. Some experts said rupee to start trading with a huge gap on Monday. “Rupee is expected to open below 49 level on Monday from its previous close of 49.41, considering the positivity in the forex market," said Aspi Bharucha, vice prsident, Vadilal Forex.
The new government is expected to amend the Forward Contract Regulation Act to give Forward Market Commission more teeth.
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