What did D-Street bulls have to say about markets, election trends and investment strategies?
The NDA won 294 seats and the Indian alliance won 232 seats at around 5:15 pm.
India’s headline indices closed sharply lower on Tuesday amid selling pressure across sectors and market capitalizations. The market capitalization of BSE-listed companies fell by $30 million to $3,955 million as the S&P BSE Sensex plunged to its lowest of the day at 70,234.43, down over 6,200 points from Monday’s close of 76,468.78. It eventually closed at 72,186.49, down 4282.29 points (5.60%).
Here are the top voices:
Prashant Jain, 3P Investment Manager Action of the Day
The market was on board with whatever the exit polls said and I think they were pricing in a lot of optimism. And when I talked to people, they said there were rallies planned after the election. So I think any reaction you’re seeing on Tuesday is a result of that.
Nilesh Shah, MD, Kotak AMC on Policy Continuity
Obviously, any given election verdict will be analyzed and policies will be readjusted. Please remember that all political parties must now keep in mind what the voters’ wishes are. Good politics and good economics often cannot go together. One thing I can analyze is that the 8.2% GDP growth in FY24 was driven by public investment and trade, and to a lesser extent by consumption and private investment. Clearly, consumption at the bottom of the pyramid in rural areas in India and mass market products was lower than GDP growth or consumption at the top of the pyramid, urban consumption and premium products. I am sure that in the coming days there will be consideration of increasing spending, particularly at the bottom of the pyramid, and we will have to look at how that is funded. Therefore, the market will wait for policy rebalancing and then take portfolio calls.
Raamdeo Agrawal on election volatility and investing.
The message to SIP investors is very clear: they should double the amount of monthly SIP installments credited to MFs. Because if you don’t buy in a now adjusted market, the very purpose of cost averaging is lost in any case. Because you bought in all the way. Now the downside is that if you don’t buy, your average will never improve. So, this is a good opportunity for customers to continue purchasing and to launch more SIPs as further issues are resolved. But whatever SIP you start, it must continue.
Raamdeo Agrawal of MOFSL for PSUs
The market loves myths. I mean the myth of public sector companies and the myth of private sector companies. I think these myths need to be broken down, but markets work the way they work. They like to have PSUs as a completely separate category and private sector as a separate category and this is how they select stocks. So everything goes up and everything goes down. However, I think the time has come to evaluate public corporations on their own merits rather than just because they are public corporations.
Rajeev Thakkar, PPFAS Mutual Fund
We were close to all-time highs, and while we weren’t quite at the exact peak, overall the returns were pretty good. And if we take a step back, what do the election results mean for the markets? So, if you leave out a week or 10 days before the election and after the election, people will keep moving. Now the next discussion is who receives what ministry. After the discussion we will discuss what will be included in the upcoming budget.
But in reality, the election results have no effect on the price of crude oil, demand for cars, or demand for technology in the United States. And as you said, the government is likely to be roughly equal, with a slim majority, and likely to be a coalition government, rather than a single party winning a majority and giving it all power.
Sandeep Tandon, CIO, Quant Mutual Fund
Yes, where there has been some hype in terms of PSU inventory, you may see some correction or consolidation or some deterioration in PE multiples over a medium or short term perspective. But overall, I don’t think anything can be reversed right now if the story of India remains the same, no matter what government there is.
Samir Arora, Founder of Helios Capital, on election results
In some ways, I think it could fall by plus or minus 3-5%. But I can’t imagine these stocks, these PSU stocks, state banks or some defense stocks going down 15%. If there are 330 seats, more orders will come in, right? But if they are not in the government, you could say that the new government may have different priorities and may not deliberately follow the programs established by the previous government, but that is not the case at the moment. So it could be up 5-7% because we made it up 5-7% on Monday. But otherwise, going 20% lower or 10% lower doesn’t make sense.
Also read: Mid-cap, small-cap and small-cap stocks plunged by up to 20%. BHEL, HUDCO are among the top losers.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
