Importance Of upcoming State elections

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The Modi Government was elected with a huge majority and it has been in power for nearly 100 days. The Government has made some progress but is treading lightly. Let us try and explore why, and what could be the road ahead in the next few months.
Now, the 4 States in which elections are going to be held soon, are Maharashtra, Haryana, Jharkhand and J&K. BJP has not been in power in these States for many years now. The elections will be held some time in October-November 2014. So, any aggressive reforms now may upset the applecart of the state elections. These elections become even more significant as they will be the first major test of Modi’s popularity after the general election.
This is the reason BJP is playing safe, and the stock market is buoyant but not too exuberant. A positive result for the BJP, at least in Maharashtra and Haryana, will send the market skyrocketing; else we may see the much awaited 10-15% correction from the top.
From now to November is the time to wait and watch, accumulate good quality stocks and enjoy the bull ride. Be prepared for stock prices to fall after you have bought them. Hence, the lineage of the stock is most important.

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