Market running ahead on hint of a stable govt: Anish Damania

In a chat with ET Now, Anish Damania, Head-Institutional Equities, IDFC Securities, shares his views on the rally in market.

ET Now: 5% in three days, 500 points on the Nifty, what is going on? Do you think institutional investors are buying ahead of poll results because bulk of the appreciation actually has come of foreign money?

Anish Damania: Yes, so what was factored in the market before this rally was between 230 and a 250 kind of performance by NDA but what the exit polls are showing it could a clear majority with some polls suggesting a 300 plus figure. So this is what surprises the market and most people feel that if NDA gets a clear majority, it will be able to form a much more stable government without a ragtag coalition. It will help them take more effective and bolder steps as they go forward. So, in terms of the outlook, what has been nagging the Indian economy is probably a policy paralysis.

Therefore, the market expects that given that there is some stability or that the worst is behind you, the stable government will come and there will be more bolder steps being taken by them as we go ahead. This is one of those reasons why the market is running ahead of expectations.