Ayodhya Verdict likely to boost market sentiment

At first Article 370 of Jammu and Kashmir has been canceled and now Ayodhya verdict; Analysts say that if political uncertainties are eliminated, economic decisions will be more aggressive.

Hyderabad/Mumbai:Uncertainty is a threat to stock markets. It may be geographically, politically and commercially. The markets across countries tend to tremble when there is any conflict in the world. Eventually, the market situation turns worse at the time of war.

At the same time, the stock market welcomes and responds positively, if the element uncertainty has been cleared. Can traders expect aggression from indexes after the end of the long-running Ayodhya dispute case?

Moody's has downgraded the sovereign outlook from stable to negative. This saw markets lose significant ground on Friday with BSE Sensex down 330 points and NIFTY 104 points. The Indian Rupee too lost significantly and was down 33 paisa for the day.

With Ayodhya case behind us, it would be fair that the markets get back to their previous ways. The expected new high on NIFTY last week may happen in the coming week or fortnight.

Analysts say the Supreme Court's sensational verdict on the land of Ayodhya is a safeguard for the market. Good news for the economy too, which fell to a six-year low. They attribute this to an outcome of certainty in political conditions and policy decisions, and to create a more harmonious climate in the country. With this evolution, the confidence of international investors in the Indian economy is also growing.

The prominence of larger state UP

Ayodhya is located in the largest state in the country, Uttar Pradesh. The state has to play a key role in making our country a $ 5 trillion economy. Analysts are of the opinion that the GDP target is easy to achieve if this largest state share is worth billions of dollars.

As per the Supreme Court's verdict if the construction of the shrine in the 2.7-acre land in Ayodhya and alternate mosque in allotted land completes the number of tourists to Uttar Pradesh will increase.

The atmosphere of peace and harmony also contributes to this. Some analysts are of the opinion that the number of people visiting Ayodhya from anywhere in the country and from abroad can reach 50,000 to 100,000 a day. If tourism increases, it will be a positive outcome for the state's GDP so that the country's economy will be profited.

Easy to achieve new milestones

For the second time under the leadership of Prime Minister Narendra Modi, the government has been solving the problems that have erupted for several years.

At first Article 370 of Jammu and Kashmir has been canceled and now Ayodhya verdict. Analysts say that if political uncertainties are eliminated, economic decisions will be more aggressive.

The government is likely to increase the pace of reform. This is expected to be a positive outcome for the slowing economy.

Sanjeev Bhasin of IIFL Securities says the government has already announced stimulus to many sectors and is likely to offer more tax incentives in the coming days. They are all positive about the market. It is not a big task for Indicators getting more new milestones in the coming days.