Modi’s return may power stock markets to 10-year bull run, says ace smallcap investor

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Updated: Mar 12, 2019 6:49 PM

Even as the stock markets continued its rise for the second day in a row Tuesday, hopes of the rally to maintain the momentum gained further ground.

The markets could expect an extended bull run if the Modi government returns to power, a veteran market analyst said.

Even as the stock markets continued its rise for the second day in a row Tuesday, hopes of the rally to maintain the momentum gained further ground. The markets could expect an extended bull run if the Modi government returns to power, a veteran market analyst said. “If the current regime and its economic policies with long-term vision of the economy of the country continues, we are in for a 10-year bull run,” Porinju Veliyath said in an interview to ET Now.

In the past few weeks, the FPIs have increased their buying in the country’s bourses propelling them to a six-month peak. In less than three weeks, foreign investors have pumped in nearly 27,000 crore into the domestic equities. It has not only pushed the stocks but also the rupee to its highest level in two months. An average investment of Rs 2,000 crore has been made by the foreign investors into the equities each day in the last two months.

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In December last year, Kochi-based investor had said that the question is irrelevant for long-term investors whether Modi will get a second turn or not. In an interview to ET Now, Porinju had noted that many investors are waiting for the elections to end before taking a buying or investing decision.

“But that is not the way one should look at equity or long-term investing. It is perhaps a very good opportunity when people are talking about the election outcome and whether Modi will come back or not. That is not very relevant at this point of time for long-term investors,” he had then told the channel.

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