The Indian markets are factoring the BJP to retain Gujarat and win Himachal Pradesh. While all of the exit polls have predicted the same outcome, markets are likely to remain volatile as and when results are announced.
Markets would once again edge higher and most probably we would see record closings next week, if the BJP wins around 120 seats or so seats in Gujarat.
This week was largely a play on the exit polls, with market also discounting a US Federal Reserve rate hike. The US hiked interest rates by 0.25 per cent. Global cues were not too many and markets across the world continued to trade firm.
Gujarat based company stocks are likely to be in action next week. In fact, in the first two weeks of the month they saw some decline on worries that the BJP was ceding ground to the Congress in the state.
Expect volatility to continue in the next week. Those looking to invest large sums should refrain from doing so, as markets look very expensive at these levels.