Did leaked exit poll data propel the Sensex to 23,000 points?

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Did leaked exit poll data propel the Sensex to 23,000 points?
It tantamounts to insider trading, if sensitive corporate information is leaked ahead of a notice by a corporate to the stock exchanges.

But, what if exit poll data is leaked which pushes the Sensex to dizzy heights. Of course, that cannot be considered as illegal for sure.

If reports are to be believed this is what seems to have happened on Friday, the day the Sensex scaled a new record peak of 23,048.49 points. Everything was alright until the first one hour of trade. But, the sudden surge after 10 am and then through the entire day took markets by surprise.

One report suggests that a leaked exit poll forecast of a news channel, suggested that the Bharatiya Janata Party-led National Democratic Alliance (NDA) would secure 260-270 seats. This information probably made its way into the markets, which fuelled a fast and furious rally, that caught most bears unaware.

A popular television news anchor with great conviction suggested that the NDA could be headed for a majority. Of course, his television channel is also likely to broadcast an exit poll, which might suggest he may have exit poll data with him.

This may have been without factoring the last phase of elections due on Monday.

In any case, markets are now factoring a near majority for the Narendra modi led NDA. Whether investors had a whiff of exit poll data, even before the last phase of polls on Monday is another matter altogether.

Those who rode the rally are happily making their way to the bank.


Read more about: sensex, exit poll
Story first published: Saturday, May 10, 2014, 9:33 [IST]
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