IGI Logo

Below the  Quote on Market Movement by Chandrachoodamani NV, smallcase Manager and Senior Equity Analyst, PrimeInvestor.in

“With the total seats for ruling party falling behind expectations, the market sentiment has been hurt despite the lead numbers suggesting a majority for the NDA alliance. This time, there would be some second guess on cabinet formation, policy making, etc while market's focus would shift to Union Budget thereafter. In any case, the current macro environment supported by favorable growth, fiscal consolidation, external trade and fund flows (FDI and bond market) would likely to continue. So, the market correction is unlikely to go deeper beyond another 10% if NDA is to form the Govt. But significant sector shifts could be under way where money could move from pockets of irrational valuations (PSUs and Govt. Capex themes) to pockets of fair and acceptable valuations. The macro fundamentals support strong case to focus on private sector financials and consumption stocks, both staples and discretionary, at this point of time. Those who have allocations to other defensive sectors like Pharma can also continue so. At the same time, a sharper correction on industrial goods players, that are skewed towards private Capex, would also be an opportunity to look forward to.”

Above views are of the author and not of the website kindly read disclaimer