We're definitely looking at a new range on Nifty which charted a breakout after trading flat for almost 5 years. Going by the latest numbers, Narendra Modi will form a stable government at the center and now all market concerns regarding a stable government are put to rest. A BJP-win was expected especially after exit poll results but a clear mandate is certainly welcome now.
There are huge expectations from this new government and it is important to match these expectations or failure otherwise will severely hit the sentiment. The economy is widely expected to take off from here and we’re all in for good times ahead.
Way ahead
Some profit booking is on the cards going ahead. Investors are advised to utilise corrections to buy into this market," he added.
Markets boomed on early election numbers and this is the start of a long-term bull market. But some hiccups are expected on the way such as below expectation monsoons and a spike in inflation thereafter.
Sector churn
Among sectors, IT is likely to underperform given that rupee has appreciated on foreign fund inflows. It will be very difficult for the Reserve Bank of India to keep rupee at weaker levels
