Election 2014: Modi's multiple challenges

Interesting Report on Election 2014

Global investment banking firm Goldman Sachs had on November 5 upgraded its rating for Indian markets from underweight to market-weight on the back of what it calls the change in India's political climate.
The latest Goldman Sachs report observes: "Equity investors tend to view the BJP (Bharatiya Janata Party) as business-friendly, and the BJP's prime ministerial candidate Narendra Modi (the current chief minister of Gujarat) as an agent of change. Current polls show Mr Modi and the BJP as faring well in the five upcoming state elections, which are considered lead indicators for the general election next year."
The report clearly indicates Modi's victory is a foregone conclusion for share-market watchers, who are taking cues from the various opinion polls that say the BJP has an edge. However, Modi-led BJP will have to break many records to convert the market's wish into a reality.
The BJP got a modest 18.8 per cent votes in the 2009 Lok Sabha elections - the lowest since 1991. The conventional wisdom is that if the party has to come anywhere close to winning 200 Lok Sabha seats in the next Lok Sabha elections, it has to grab 25-26 per cent vote share. Such a massive positive swing in excess of six per cent has rarely..

Continue Reading