As speculation over the BJP-led NDA’s seats in the ongoing Lok Sabha polls ripples through financial market corridors, Prime Minister Narendra Modi has indicated that the Indian stock market will break all its previous records and participants will be tired of managing the rush after June 4 election results.
Benchmark indices Sensex and Nifty need about 300 points and 1100 points, respectively to surpass their previous record highs. After marking their all-time highs on April 9, both market gauges have seen multiple bouts of volatility in the past six weeks with many analysts and commentators linking this see-saw pattern to low voter turnout in the ongoing Lok Sabha elections. Market participants fear that comparatively lower voting percentage in the five rounds of elections might dent the ruling BJP’s performance and drag the seats tally to less than 300.
Modi sees Indian stocks hitting record highs post June 4
Meanwhile, the PM’s recent comments on the equity market in an exclusive interview with NDTV will certainly calm the jittery investors. Modi said that within a week of declaration of election results, stock market programmers will get tired of dealing with the market rush, indicating the Indian stock market will touch record highs.
The prime minister further said that new investors play a key role in boosting the economy and their risk capacity needs to be increased with time. He added that in the last 10 years, the Sensex has reached the 75,000-level from the 25,000 level.
Modi wants more common people to participate in the stock market as their involvement will strengthen India’s economy. “Every citizen should have some risk appetite,” the PM stressed.
What does the Modi government’s continuation mean for investors?
Investors always want the ruling government to be successful in elections as that means stability and continuity in policies and reform measures.
What should investors do now?
Market experts are cautious ahead of the election results, though they view this time as an opportune moment for new investors eyeing to enter the market. At the same time, they ask participants to tread cautiously. They are of the view that investors should conduct thorough research, know their risk appetite and adopt a wise investment approach. While the chances of potential gains may sound tempting, prudence is the key. They also advise market participants to review their portfolio mix and make changes if required.
According to them, one should closely watch what’s happening in the market and not panic. As market gurus say, patience is the most important thing that helps build wealth.