Porinju Veliyath bets on Modi govt: Smallcap guru says, strong mandate for BJP-led NDA will push reforms

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Published: May 22, 2019 5:56:33 PM

Even as stock markets see a strong rally, a strong mandate for the Modi government may extend it further as new reforms set in, a veteran investor said.

The broader rally is there to stay and may last for two to five years, Porinju said.

Even as stock markets see a strong rally, a strong mandate for the Modi government may extend it further as new reforms set in, a veteran investor said. It’s not only a start of a new wave in the stock markets, but also in the economy, ace investor Porinju Veliyath told ET Now. The broader rally is there to stay and may last for two to five years, he said, adding it could be an inflection point for downbeat midcap and smallcap stocks. With the exit polls giving clear majority to the BJP-led NDA government, the investors who were limited only to the blue chip stocks have started showing interest in them, he added. The flow of investment into blue chips can’t go on for a long time, he added.

Everything in the last few years was against  smallcaps and midcaps since they were overpriced and there was too much excesses earlier in 2017. The smallcaps may rectify now, said the CEO of Equity Intelligence India.  The smallcap czar also advised the investors not to look at highly-fancied stocks, chased by the foreign institutional investors (FIIs), and are highly priced or richly valued.

Also read: Will stock market rally tomorrow? Here’s how Sensex performed on last four election result days

Meanwhile, the ace investor had shared the same views a couple of months back as well in his interview with ET Now when he had said that 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. He had then said that the investors are waiting for the elections to end before taking a buying or investing decision.

The investor sentiment has turned upbeat this week after most exit polls forecast a win for the Narendra Modi-led NDA. On Thursday, the results of the seven-phased polls will be announced.

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