As we approach the Lok Sabha election results, the stock market has been a bit shaky. Over the past few days, major indices like the Nifty50 and Sensex have seen a slight decline, although they bounced back a bit today. The Volatility Index (VIX), which measures market volatility, has also gone up, indicating uncertainty among investors.
Experts predict that the market could remain volatile even after the election results are out. To handle this uncertainty, they recommend diversifying your investment portfolio and focusing on quality stocks in sectors like infrastructure, real estate, and manufacturing. It’s also a good idea to look for value investments and take a long-term approach to investing during this period of heightened volatility.
The market seems to be pricing in around 330 seats for the ruling party. Any deviation from this expectation could lead to fluctuations in the market. So, it’s essential for investors to tread carefully and be prepared for potential ups and downs in the market in the days following the election.
After the Lok Sabha Elections 2024, investors are eager to find opportunities in the market. Here’s what some investment experts recommend:
Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS:
We’re aiming for a Nifty target of 25,000 by December 2024. We don’t focus too much on short-term events because they can be influenced by various technical factors and may not reflect long-term trends.
Quality stocks are currently available at reasonable prices. Consumer stocks, in particular, could perform well after the election, as they have underperformed in the past year and are now attractively priced. So, investing in quality consumer companies could be a good move at this time.
Diwakar Rana, Senior Research Analyst at Prudent Equity
The market is in a bullish phase, and it may continue that way for some time after the election. It’s important to be selective in your investments and focus on companies that consistently show strong earnings growth and are reasonably priced.
Many investors are jumping on new trends without considering traditional valuation methods. While it’s exciting to invest in new themes, it’s essential to analyze companies from a bottom-up perspective and look for growth opportunities at reasonable prices.
We’re optimistic about industries like real estate, banking, infrastructure, and housing finance. These sectors are expected to perform well in the coming years, driven by India’s economic growth.
Viraj Gandhi, CEO, Samco Mutual Fund
The government’s focus on manufacturing and self-reliance is likely to benefit companies in these sectors in the coming months. Investing in companies with significant export exposure could be a wise choice.
However, it’s advisable to avoid sectors like IT and financial services for now. IT companies are facing challenges due to factors like tightening US yields, while financial services are under regulatory scrutiny.
In summary, while the post-election market may offer opportunities, it’s crucial for investors to be cautious and thoughtful in their investment decisions.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
