Bharatiya Janata Party (BJP) The Indian stock market fell sharply on Tuesday due to the failure of the Congress to get a majority in the Lok Sabha elections 2024. However, today the market has seen a tremendous recovery. However, the question still remains in the minds of investors that how will the market be in the coming times? Will the market fall again or will it continue? In such a situation, where should they focus?
The market will give great returns in the long term
Market experts say that there was a big rally on Monday due to the exit polls predicting a clear majority for the BJP and the market fell sharply due to the results being weaker than expected. Due to this, the market may see fluctuations in the coming days, but in the long term the market will give positive returns. Investors should focus on large caps and stocks with the right valuation. As soon as the new government is formed, stability will return to the market.
Select stocks carefully
Yes Securities Executive Director Amar Ambani said, “Valuations in the Indian stock market were at a high level. The decline has happened due to weaker than expected results. If Narendra Modi becomes the Prime Minister in the new NDA government, we do not think that the market will fall by another 10 percent.” He further said that investors have to be careful about stock selection and should choose such stocks which have good valuation and have the potential to earn good income in the future. He also said that the bull market is not over yet. There is no bubble like situation in the corporate sector and housing market along with banking. The condition of the economy remains strong.
Investors should focus on the long term
Pradeep Gupta, co-founder and vice chairman of Anand Rathi Group, said that according to historical data, despite fluctuations, the market has been successful in giving positive returns to investors. Investors should focus on the long term. They should diversify their portfolio. If there is continuity in the policies of the government, then the infrastructure, defense and capital goods sectors will benefit. Large cap stocks are our choice considering stability and flexibility.
Input: IANS
Latest Business News