Will FIIs return to India or will valuations still keep them away? Vinay Jaising explains

Firstly, let’s discuss the market volatility we are seeing just ahead of the big event. What is your expectation for the election outcome? Everyone is coming out with their estimates on market movement. How do you see the market positioned at this point in time?
If you look at the last two election results, in 2014, the NDA had about 336 seats. In 2019, the NDA had 353 seats. Both times, the BJP was well above the crucial 272-seat mark. So, whatever the outcome, Monday will be very volatile as that’s when the counting happens and finishes. The market’s response will depend on the percentage of votes BJP and NDA get compared to 2014 and 2019.

Unlock Leadership Excellence with a Range of CXO Courses

Offering CollegeCourseWebsiteIIM LucknowChief Operations Officer ProgrammeVisitIIM LucknowChief Executive Officer ProgrammeVisitIndian School of BusinessISB Chief Digital OfficerVisitA single party or coalition getting more than 272 seats to form a stable government is crucial. If we look a week ahead and consider the steady inflows from domestic investors, they’re already favoring a stable government. So, apart from a volatile week based on vote counts, if the seat count is between 330 and 360, we will see stability, and the VIX will likely decrease.