Grey market prices are pointing to a strong listing of Rs 550 per share, considered more profitable than most of its peers in the Indian retail sector.
It also said that final Supreme Court verdict on the liquor ban within 500 meters of highways and the effective Goods and Services Tax rate will be the key drivers of the stock going ahead.
Analysts have advised investors against taking any long bets in PSU banks, at least for the moment, given what could happen in the coming weeks.
"We expect the BJP to get to a ‘near-majority’ state even in the upper house by 2020 if the BJP wins the national elections in 2019," said CLSA.
"The Modi government’s tilt towards social sectors is already visible and the election outcome is unlikely to meaningfully change the govt’s policies," said CLSA.
Open interest in Dr Reddy's futures rose 16% as short positions were built and was the highest since July 2007, while in the cash market, the stock hit a 31-month low.
If the BJP does not fare well in the state elections, it could add to foreign investors’ caution towards India but it is unlikely to be an ‘enormous problem’, said O'Neill.
Last month, Jio-the telecom arm of Reliance Industries announced that that it will start charging for its services and came out with a Prime offer of Rs 303 per month.
Unless the BJP suffers a significant upset in the state elections, any adverse outcome will not lead to any big fall in the market, said Mobius.
According to CLSA, the combined fleet of Uber and Ola has risen from 100,000 units in Mar 2014 to 750,000 units in March 2017.
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