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Political-economic factors might lead to volatility in equity markets: Assocham

IANS  |  New Delhi 

Industry body on Sunday advised investors to adopt a "wait and watch" attitude due to the impending state assembly elections which might lead to in the country's financial markets.

According to an note, the political-economic narrative of 2018 and early part of 2019 will be centred around the impending polls in states like and or the elections.

"While there would be higher level of in the financial markets as we further get into the election mode, the trend towards resolution of NPAs through the IBC will continue along with the focus of the government towards completion of the key infrastructure projects...," Assocham's Secretary said.

Further, the note said that investors should focus more on sectors associated with rural consumption and which are likely to receive "increased opportunities".

As per the note, the roll out of Aayushman Bharat -- the national health scheme -- which has insurance as its core element, would gather traction.

"It is a flagship programme of and the roll out is expected to be big enough, providing a huge opportunities to the health insurance service providers, as also those in the sector," the note said.

Besides, the note pointed out that the government will also focus more on the farm sector.

"With Monsoon expected to be normal and the government push likely in the next few months, the firms in the seeds, agri implements, including tractors, fertiliser, pesticides, and would get a lot more business opportunities than in the previous few years," the note said.

Apart from domestic cues, the industry body noted concerns arising out of global factors like rising

"The geo-political situation in the is key to the crude prices as also the financial markets. With dollar rising, India's total import bill in dollar terms would exert pressure on the country's current account position as well," the note added.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, May 13 2018. 16:30 IST
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