HOW THE STOCK MARKET REACTS ON TRUST VOTE DAYS

Earlier trust vote days, Market reaction

On the day of the trust vote

  A day after the trust vote...

Source: NDTV profit

First one of trust vote, Mr V P Singh lost, But markets gained in both days by 5.9%, Second one, Mr A B Vajpayee resigned, but little loss first and 2.9% gain next day, Third one, Me Deve Gowda won trust vote, but same day 1% up and next day 1.2% down, and Fourth one, Mr A B Vajpayee won trust vote, first day lost 6.9% and next day gained 3.7% resulting loss of 3.2%

What is expected on 22 July 2008 and 23 July 2008

First Scenario – bad news about winning before end of markets but won trust vote after markets

Negative on 22 and positive on 23rd July 2008

Second Scenario – Good news about winning before end of markets but won trust vote after markets

Positive on 22nd and Positive on 23rd July 2008

Third Scenario – Good news about winning before end of markets but lost trust vote after markets

Positive on 22nd and Negative on 23rd July 2008

Fourth Scenario – bad news about winning before end of markets but lost trust vote after markets

Negative on 22nd and Negative on 23rd July 2008

How much can loss or gain on trust vote

Markets would gain upto 750 points to 14600 in the week itself

Markets may lose 1200 points to 12650 in the week itself

INDIA INC confident of UPA victory (as per NDTVprofit report)

ASSOCHAM survey said that India Inc on Monday exuded confidence that the UPA government would win the confidence motion and complete its reform agenda during the remaining part of its term. Apex industry body of Assocham surveyed majority of 400 CEOs.

The UPA government will sail through the confidence motion and emerge victorious to hasten its unfinished reforms in areas of pension, insurance, civil aviation and even labour. Only 112 CEOs were not too confident to conclude that the confidence motion would be taken to a logical conclusion in view of conflicting reports emanating from various political parties.

With the signing of the nuclear agreement, investments to the tune of 40 billion dollars can be generated in field of nuclear energy in the country as leading industrialists have already started negotiations with their prospective counterparts to produce nuclear power. This shows the confidence of India Inc about the trust vote. A majority of CEOs opined that government would allow private players to make foray into nuclear power generations.

Assocham President Mr Sajjan Jindal said The CEOs, who were confident of UPA winning the confidence vote, argued the N-deal was in the interest of the nation and a good sense would prevail among majority of MPs..

Mr Pranab Mukherjee said that we were never in minority, even on the day the Left pulled out, we were 273.

Mr Nilotpal Basu said that PM may win vote, but will lose trust of the people.

According earlier media rumors say that there was an important meet between Mr Mukesh Ambani and Prime Minister and this may take care of some M.Ps for trust vote

Recent media says that even bookies are trying to give Rs.50 crores to each M.P to vote for the UPA government

Let’s see reality on markets