The results of the Lok Sabha elections will be announced on June 4. The market has been continuously going down before it. In such a situation, everyone is speculating differently. It is impossible to predict with clarity whether the market will go up or down after the election results. Stock market specialists are advising investors on what to do until then. Abhishek Banerjee, who has more than 10 years of experience in portfolio construction and asset allocation, said that investors should focus on diversified sectors in such a scenario.
He said that the manufacturing, financial and metal sectors can be good choices. Banerjee predicts that in the next ten years, metal consumption will reach levels not seen in the previous fifty years. Additionally, he has said that PSU banks make good investments. He added that in terms of investment opportunities, a good PSU bank is much better than a private bank.
Banerjee said that a rally of 5-10 per cent can be seen in the market after the results but he has also pointed out a slight risk. He remarked that if the BJP comes with a huge majority or falls short of a majority, then the market may see a surprise. According to him, continuity of policies is very important for fluctuations in the market.
The expert added that if the BJP comes with a huge majority, then investors may be confused about how big a change will happen in policies now. On the other hand, if the BJP has a weak performance, it will show that people are not happy with the current narrative.
Abhishek Banerjee said that there is still a lot of dynamism in the Indian market, adding that if the situation is going to get worse in the next five years, then several things would need to go wrong for this to occur. In Banerjee’s opinion, the real danger is from global conditions, which include war and changes in tariffs.
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