Nivesh Mantra: Wait for now to invest in the volatile market, the stock market is going up and down
Nivesh Mantra: The stock market is currently going through a lot of instability. In such a situation, if you want to invest, then wait for some time for the new government to come. In fact, institutional investors including mutual funds are keeping an eye on the distribution of ministries in the new government because this time, due to the reduction in BJP's seats, some ministries will be kept by its allies.
The stock market has been witnessing a lot of upheaval since June 1. Sometimes a rise of 2,600 points and sometimes a fall of 4,000 points. In fact, a lot is still unclear after the elections. In such a situation, if you want to invest, then wait a bit. Ajit Singh's report explains the strategy for the future performance of the market-
The stock market is now experiencing a lot of turmoil. In such a case, if you want to invest, you should wait for the new government to form. In reality, institutional investors, especially mutual funds, are keeping a watch on how ministries are distributed in the new administration since, due to the BJP's seat decrease, some ministries would be retained by its allies. This time, the BJP will have to work on the terms of its allies, which may make it impossible for the government to continue on the path it has taken over the last decade. In such a situation, the market boom may moderate or increase.
The way the government has been formed and the way the ministries will be distributed, it is difficult for the government to continue the reforms in the same way as it was earlier. If we look at the last two or three years, the shares of government companies have given many times returns. But now there may be a slight stagnation in it. The shares of government companies are currently at high prices. In such a situation, investors should keep a little distance from these shares and adopt a wait-and-watch strategy.
Analysts believe that there is a sign of political stability for five years. The ups and downs happening for a few days show why investors should stay invested on good days take advantage of the fall and increase investment in equity. With the inclusion of constituent parties in the government, the emphasis will be on welfare schemes. This will increase consumption and rural demand. This is the reason why FMCG is doing better.
Analysts believe that there is a sign of political stability for five years. The fluctuations happening for a few days show why investors should stay invested in good days take advantage of the decline and increase investment in equity. With the inclusion of constituent parties in the government, the emphasis will be on welfare schemes. This will increase consumption and rural demand. This is the reason why FMCG is doing better.
On June 3, the BSE Sensex closed at an all-time high of 76,469 with a gain of 2,507 points on the exit polls after the last phase of voting on June 1. Investors made tremendous profits that day. After the election results, the Sensex fell by 6,000 points, causing investors to lose up to Rs 45 lakh crore. However, by evening, when the market closed, the loss was reduced to Rs 31 lakh crore. However, since June 3, the market has seen ups and downs. Now the loss has almost been made up and the Sensex has again crossed 76,000.
