A day after exit poll results predicted a return of the Congress in Haryana, market guru Shankar Sharma on Sunday compared the grand old party with China's stock market, which has started going up following stimulus push from Beijing. In a tweet. Sharma, the founder of GQuant Investech, said: "In a stock market sense, BJP is looking like the Indian stock market, and Congress, like the Chinese stock market."
On Saturday, exit poll results predicted a landslide win for Congress in Haryana and an edge for the party in Jammu and Kashmir. As per C Voter exit polls, Congress is expected to win 50-58 of 90 seats in Haryana, while the BJP, which bagged 40 last time, is likely to settle with just 18-28 seats. If these numbers hold on the counting day, which is Tuesday, the BJP will lose another north Indian state to the opposition after Punjab to AAP, and Himachal to Congress.
The Congress sweep in Haryana was expected considering its gain in the Lok Sabha polls. Not just in Haryana, the grand old party is also ahead in Maharashtra, where assembly polls are expected to be held in mid-November.
While Sharma did not elaborate what he meant, he was likely referring to the resurgence of the Congress much like China's stock market, which experts believe is set to rally in the near future. The BJP, on the other hand, has suffered reverses starting from the Lok Sabha elections, in which it failed to secure a majority on its own.
Analysts have predicted that China stocks will keep rising, according to CNBC. While investors see an opportunity in the Chinese stock market, experts have sounded an alert for caution for the Indian market as they believe most stocks have become expensive.
Earlier this week, Christopher Wood, global head of equity strategy at Jefferies, cut exposure to Indian equities by one percentage point. However, the seasoned investors remain 'overweight' on the Indian markets. Wood has increased the weight of China by two percentage points. However, he has been 'underweight' on China.