Profit Booking May Continue For Some More Time
FinTech BizNews Service
Mumbai, June 4, 2024: The experts and observers have shared the market commentary after viewing the market movements reflecting the trends and results of the General elections in the country on Tuesday.
Siddarth Bhamre, Head of Research at Asit C Mehta Investment Interrmediates: “BJP falling short of a complete majority won’t stop NDA from forming a new government along with its key allies. Stock markets have been expecting a complete majority for the BJP and a thumping victory for the NDA. Exit polls too cemented the expectations. Markets had factored in the best possible outcome and valuations are rich. However, the market is aware of the challenges associated with coalition government. Now with election results not being one-sided, we are witnessing profit booking. We believe this profit booking may continue for some more time. Spaces like FMCG and IT may see less damage as defensive buying along with valuation comfort may keep them immune to this correction. Though we expect some correction to continue in the market, it would not be fair to consider it as the end of the bull market. Most likely this correction may turn out to be a hiccup in the long-term bull run.”
Vinit Sambre, Head, Equities at DSP Mutual Fund: There is bit of uncertainty as investors are concerned about the slowdown of reforms that had been initiated under the BJP-led government. This uncertainty has triggered a correction in the markets as investors reassess the outlook under the new political landscape. We would like to believe that the development agenda that spurred the performance of equity is likely to persist, irrespective of the party in power. Some of the reforms implemented are integral to the long-term growth and efficiency of these companies / country and are unlikely to be undone easily. Consequently, once the initial shock subsides and market sentiment steadies, the markets are anticipated to regain stability, with its performance aligning more closely with its underlying fundamentals.
Aditya Khemka, Fund Manager, InCred Asset Management: Today's action suggests that this is the beginning of a stock picker's market and probably a prolonged pause for the passive investor. We expect the market to be sideways in the near future and businesses with strong earnings momentum and reasonable valuations to outperform the market.
