Skip to main content

Election Results' impact on Stock Markets

The current Election results will have a major impact on Indian Stock Markets. What has changed from the previous set-up? The Left is out of the Government and UPA is emerging as the majority coalition without the regional parties. These two points are major positives for the markets.

As always, it is sentiments which rules anything. The sentiments are buoyant to boost the moods all over. Also FIIs, assured now by the political stability at the Center, will be interested more in investing in India.

At this juncture markets having already run-up 4k points from 8k to 12K, what should a retail investor do now?

As UPA coming to power, we hope to see privatization taking off in a big way, the financial sector reforms, especially for the banking and insurance sectors. So these sectors and stocks in these sectors are a good place to invest into. Many stocks in the Stockwatch section belong to Banking sectors. Also major PSU stocks like HPCL, BPCL, IOC too can be looked into.

These positives doesn't mean, one should jump into markets on Monday and buy, because on Monday, markets are expected to open up in a big way. There is no point in investing when markets are up 700/800 points up. Also the Global negatives are still in place and nothing fundamentally has changed.

Traders can ride the momentum with strict stop loss in place. But as far as investors are concerned , any sharp correction in markets can be used to buy fundamentally good stocks. Again the old rule stays fit - Buy low, Sell high ! Identify yourselves whether you are investor or short term trader, before committing funds now.

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !

Mutual Funds - How to modify KYC or do rekyc?

Last year SEBI issued a circular effective April 1, 2024 regarding KYC norms for the securities market. This has created a lot of confusion among investors and intermediaries, whether who has to do rekyc and who need not? First check your KYC status from CVL KRA . If the 2nd column says KYC VALIDATED, then you are good to go - no action required. You can invest and redeem all the funds. If it says registered, you can invest in existing Fund houses. You have do rekyc to invest in new fund houses/ schemes. If it is on hold, you have to do rekyc.  You can do rekyc completely online from the AMC's websites, links of which are given below: Bandhan Mutual Fund - Bandhan Canara Robeco Mutual Fund - Canararobeco DSP AMC - Dsp Franklin Templeton Asset Management Franklintempletonindia HDFC Mutual Fund Hdfc ICICI Prudential Mutual Fund Icicipruamc Kotak Mahindra Mutual Fund  Kotak SBI Mutual Fund  Sbi Investors having KYC status of  'Registered' or 'On Hold' can complete thei...