Investors betting on exit polls will sooner or later face a reality check
Who gets to form India’s next government will be known only on May 23, when votes are counted, but financial markets rarely wait till the official word is out. Yesterday (May 20), a day after all major exit polls predicted prime minister Narendra Modi’s return to power with a clear majority, India’s Sensex posted its biggest single-day gain in 10 years and closed at a record high. “The exit polls’ prediction of a stable government with a majority, or near majority, augurs well for reforms and a policy agenda,” said Gautam Duggad of Motilal Oswal Financial Services.
