precent higher Friday, the day before the general election results are declared. Analysts said foreign funds bought heavily into blue chips after exit polls showed that the Leftist-supported Third Front coalition is unlikely to form the next government. Analysts are expecting the market to see another 5 per cent rise if either the ruling Congress-led UPA or the opposition Bharatiya Janata party-led NDA comes to power. However, emergence of any other government may result in some sharp downward correction. Exit polls by various media organizations have given a slight edge to the ruling United Progressive Alliance, led by the Congress party, over the main opposition - the National Democratic Alliance. The Third Front, which includes the anti-reforms Left parties, is estimated to get just about a fifth of the total seats in Parliament. There are also worries of political uncertainty that could result from a close fight between the ruling coalition and the main opposition alliance. “A fractured mandate in election results this Saturday, like what exit polls point to, would make the government formation process at least three weeks long,” Nilesh Jasani, a research analyst at Credit Suisse, said in a note. The Bombay Stock Exchange's benchmark Sensitive Index jumped 2.5% to close at 12,173.42, after trading between 11,948.70 and 12,219.54 during the session. The 30-stock index ended the week with a 2.5% gain. The Sensex has risen nearly 49% since it ended at 8,160.40 on March 9, its lowest close in 2009. “It seems foreign funds - waiting on the sidelines for a correction to happen - bought aggressively as the correction they had anticipated never came, and chances of it coming seemed less if a stable government comes to power,” Gaurav Dua, head of research at brokerage Sharekhan Ltd, said. Dow Jones Technical Analysis estimates the Sensex will trade in a 10,700-13,300 range next week. On the National Stock Exchange, the 50-stock S&P CNX Nifty advanced 2.2% to 3,671.65. The Times of India reported that Congress was “brimming with confidence.” Observes said the UPA alliance was trying to rope in the regional Samajwadi Party. There are signlals that the Left would eventually back Congress to keep the BJP out of power. The Hindustan Times said the leftists may “reluctantly” give PM Manmohan Singh another term. Turnout for the election has been put at about 60 percent. The parties have about two weeks to hammer out a workable government. Parliament must be constituted by 2 June.
