Business

Investors Brace For Market Volatility Amidst Post-Election Uncertainty

In the wake of the unexpected outcomes of the Lok Sabha results, Indian investors are bracing themselves for continued volatility in the stock markets, with analysts urging caution while emphasizing long-term prospects.

The Indian equity benchmarks experienced a sharp decline on June 4, leaving investors jittery about the future trajectory of the market.

However, market experts suggest that while volatility may persist in the coming days, the overall sentiment remains optimistic for positive returns in the long run.

Following a tumultuous period, both Sensex and Nifty rebounded on Wednesday, offering a glimmer of hope to investors.

However, uncertainties linger amidst the formation of a new government.

Amar Ambani, Executive Director of YES Securities, highlighted that the election results prompted a necessary correction in the market due to already elevated Indian equity valuations.

Ambani hinted at potential market stability with the new government, especially if the NDA, led by Prime Minister Narendra Modi, remains in power, despite possible further corrections.

Pradeep Gupta, Co-founder and Vice-chairman of Anand Rathi Group, echoed similar sentiments, emphasizing the importance of long-term outlook amid short-term fluctuations.

Gupta stressed the need for investors to remain informed and focused on fundamentals, particularly as policy continuity plays a crucial role in shaping market sentiment.

In terms of sectors, analysts anticipate benefits for industries such as infrastructure, defence, and capital goods, as the government prioritizes development projects and policy continuity.

Consequently, investors are advised to consider allocating their investments in large cap stocks known for their stability and resilience against economic fluctuations.

Also Read: Stock Markets Rise In Early Trade; Sensex Gains 307 Points

Mankrit Kaur

Recent Posts

Same Sex Marriage Case: SC To Hear Review Petition On July 10

A five-judge bench headed by Chief Justice of India DY Chandrachud will hear the petition…

2 hours ago

Centre Opposes Cancellation Of NEET-UG Exam In SC

The Centre, in a preliminary affidavit filed before the Supreme Court on Friday opposed the…

2 hours ago

TMC MP Responds To NCW Letter To LS Speaker On Moitra’s ‘Pajama’ Remark

NCW has written to the Lok Sabha Speaker OM Birla over TMC MP Mahua Moitra's…

2 hours ago

India Logs 501 Deals Worth $21.4 bn In FY24 Q1

Mergers and acquisitions (M & A) and private equity (PE) deals together stood at 467,…

2 hours ago

K’taka Govt Resuffle 21 IAS Officers Along With DC Who Flagged MUDA Allotments

Though the government transferred 21 senior IAS officers on Friday, moving Dr KV Rajendra is…

2 hours ago

Accel To Host India’s Largest Cybersecurity Summit On July 25

Leading venture capital firm Accel is set to host India’s largest Cybersecurity Summit in Bengaluru…

2 hours ago