New Delhi: With the last phase of polling set to conclude on Saturday, June 1, 2024, all eyes will be on the exit polls and then the actual results on Tuesday, June 4, 2024. While brokerages have presented multiple scenarios, including a bull run on June 4, if the BJP-led NDA returns to power, there are also chances of a bearish turn in the scenario that the alliance scores lesser than expected seats and the Opposition INDIA alliance comes to power.
Irrespective of which government comes to power, the Centre is expected to continue its push for welfare and manufacturing while continuing with capital expenditure. “The market will act according to the reaction of retail investors. Neither the Institutional investors are going to invest or disinvest for a particular party’s win,” said Dr. Ravi R Kumar, investor, economist and CEO of Know The Pulse. Companies are unlikely to “shift out of India, shut operations or expand business depending upon the win or loss of the party,” said Kumar.
Bull run on June 4?
Prime Minister Modi said during an interview last month that stock market participants will get tired of counting the deals and transactions since markets are likely to surge, indicating a return for the BJP-led NDA government. PM Modi also opened up about the state of PSU entity stocks under his government, which have become the top picks over the past 10 years. Life Insurance Corp of India and Hindustan Aeronautics (HAL) were some stocks that PM Modi mentioned during the interview, underlining how his government was responsible for the turnaround in these companies’ fortunes as well as investors belief in their performance.
Commenting on whether June 4 results are likely to result in bull or bear trade, market expert Ravi R Kumar said that “the reaction will last for a mere few days and people will lose money because of sentimental trading.” He urged investors to wait and watch once the results are out “if you don’t have your own strategy to trade with.”
Stock market investors have turned cautious owing to the market volatility witnesed ahead of the Lok Sabha poll results due on June 4, 2024. While there are many scenarios prepared by brokerages, most scenarios predict a comfortable win for the BJP-led NDA. Market exoert Ravi R, Kumar says it is best to wait and watch the markets on June 4. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
