How do Gujarat Elections Results impact our Investments and the Markets?
First of all, don’t consider this article as political. Markets track politics very closely and hence it’s our duty to bring out 360 degree perspective of the results to the investors.
The Gujarat Elections Verdict was most sought after results by the country, government and the opposition. The very fact that, in spite of BJP winning 2/3rd majority in Himachal Pradesh, none of us are talking about that proves the importance of Gujarat Verdict.
Gujarat is one of the hubs of businesses in India, Textile and Diamond industry breaths and lives there. After Demonetisation and then implementation of GST, both these industries had almost come to a standstill. Coupled with 22 yrs of anti-incumbency and Modi moving away to Delhi, the ground was looking slippery for the BJP.
Thus we saw some welcome changes in the GST which basically settled the anger of the voters in South Gujarat particularly. I have been talking to Textile traders in Surat and they all were satisfied with the moves.
The results prove that People of India are with the Reforms. Only Reforms can take us forward.
With all due credit to Rahul Gandhi, he really did very smart campaigning this time. He started with the issues related to GST and people were able to relate the pain. But then due to lack of guidance he started sounding against reforms by calling GST as Gabbar Singh Tax. Further RG roped in the Pattidar leaders who were doing vote bank politics.
Had Rahul Gandhi stood by only with the problems faced by people, there were fair chances that Congress would have scrapped through the half way mark. Early trends in the morning were showing as if Gabbar Singh would win but then how all villains in movies lose at the end…
The result sends some good message to the markets. Sensex opened almost 600 points and then went back to green. High time the opposition stops talking against Demonetisation and GST. People are thinking differently.
The victory of BJP means the reforms may continue, also a lower victory for the BJP means the reforms will be more people friendly and not one sided.
Hence there are sectors which will benefit immensely with these expectations. Call your Investment Adviser and invest to make money.
Happy Investing
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