The Sensex has been on a downside since the beginning of May. There are murmurs that the stock markets are pricing in the possibility of Narendra Modi losing the mandate.

But is it really so? The stock markets are hardly suggesting that BJP will fall below 220 seats on its own. The situation is "fluid" ahead of the results on May 23rd. Most stock market players still believe that there are very high chances of BJP winning 240-250 seats on its own.

They are waiting for the verdict to be out so that investment decisions can be made.

Economic analyst Sri Thiruvadanthai analyzes the situation and says, "I am seeing people commenting about Sensex being down for 7 days, whether FIIs are selling, and whether it bodes ill for BJP. Markets carry info about the election but you have to look at it carefully. Check India against other emerging markets--up since elections began. Now, look at rupee against other Asian currencies. Middle of the pack. Nothing here. If a hung parliament looks likely, then the rupee would have been selling off more."