In the short-term, there will be some correction but given the land slide victory for the BJP, markets are likely to stay around the current levels. Markets are betting on the hope that the new Government paves the way for structural growth story.
Equity as an asset class is set to see unprecedented gains in the times to come. Hence, I would advice investors to incrementally allocate money to this asset class.
Wherever there has been beaten down pockets, there will be out performance and this has partly happened in the way cyclicals have moved.
In a bull run, it’s the mid and smallcap names which exhibit outperformance and I think this is set to repeat all over again. Second line high quality stocks are the ones to accumulate now. Also, as investor confidence returns, we will see liquidity returning to some of the illiquid stocks.
