The Bharatiya Janata party needs to change its communication strategy.
Instead of talking wrong doings of the Congress, talking about punishment to Congress family members and mimicking them, BJP is required to talk more about what would they do differently in terms of acclerating growth in the economy
Investors expected BJP to talk positively. Unfortunately, they kept on talking about the negatives of others! Ultimately, it fell in a trap of by responding to their negatives, baseless accusations and clearly wasted their energy.
I hope they understand this aspect sooner - before 2019 elections. They need strong leadership at each level to win back confidence.
Till today, the market was anxious about state election outcome. Today, it is relived from this pressure. Most likely, it will return back to merit-based investing, as the overhang of election results is out of the way now.
Markets are available at ~18x one-year forward valuations, and therefore, unfolding of events will lead to value investments being chased. Good quality stocks should be accumulated.
Bajaj Finserv, HDFC Life, Reliance Industries, Sterlite Technologies, Bajaj Auto should be accumulated at current levels and every declines to generate good returns. Investors should chase value not price.
Deven Choksey is managing director, KR Choksey Investment Managers. Views expressed are his own