Quote on Markets bleed post 2024 election results by Mr. Amar Ambani, Executive Director, YES Securities
Below the Quote on Markets bleed post 2024 election results by Mr. Amar Ambani, Executive Director, YES Securities
"Indian equity valuations were quite rich already, and election result day presented it with the perfect reason to correct themselves. Another 10% correction cannot be ruled out, simply on the basis on where we stand on market multiples.
As long as a stable coalition is put in place, markets will settle down after a while. Not the ideal scenario that the stock market would have hoped for though. In the new scheme of things, we need to assign a lower valuation multiple, to factor in coalition risks and its impact on the reform path.
It is even more important for investors to be sure about their stock selection and buy only reasonably priced companies with earnings visibility. This is not the time to pay big premiums on stocks, or buy only in the hope of future reform.
I do not see this as the end of the bull market. India still has a lot of positives going for itself. Patience will pay. Traders, I guess, have learned a tough lesson."
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