Dow Jones was down 178.37 points or 0.69 per cent to close at 25.764 points. The Indian Rupee too was under pressure and lost 31 paisa or 0.44 per cent to close at Rs 70.22 to the US dollar.
The healthcare sector or the pharma sector was under severe pressure with any pharma companies declining around 10 per cent after news of a suit being filed by 44 US States against 20 companies which named seven Indian companies as well. These companies are Wockhardt, Glenmark, Dr Reddy's, Aurobindo, Lupin, Zydus and Taro which is a subsidiary of Sun Pharma.
Tata Global Beverages and Tata Chemicals have agreed to demerge the consumer division of Tata Chemicals and merge the same with Tata Global Beverages. This should be positive for both the companies. Shares of Tata Global Beverages were up sharply gaining Rs 36.85 or 18.57 per cent to close at Rs 235.30, while Tata Chemicals gained Rs 28.80 or 4.88 per cent at Rs 619.10.
The seventh and final round of polling for 59 seats is being held today and would be over by evening, post which the electronic media would start showing exit polls. There are a host of channels which would be coming out with their version of exit polls. These channels could be classified as pro-government, anti-government and neutral with the last of the lot being very few. One would have to do a lot of calculation to decide what could be the final outcome.
Market movement on Friday indicates that the street believes that NDA would form the government. If exit polls indicate something negative to this, there could be a negative movement on Monday. In any case, for the next three days, markets would be volatile based on one's understanding of the exit polls and the possible outcome. It makes sense to stay away from choppy markets unless it is to buy or sell investments. Trading may be dangerous as movements could be very sharp.
It doesn't make sense to be a pollster with exit polls less than a few hours away. Suffice to say that markets confidence in the government of the day is likely to be repeated. Invest wisely.
(Arun Kejriwal is founder of Kejriwal Research and Investment Services)