Punting on election results is risky; focus on fundamentals instead

A bottom-up approach of investing in select stocks that are witnessing earnings recovery is the prudent course for the current markets

The equity markets were volatile both, around the exit polls and when the actual election results were announced. The Sensex rose 3.75 per cent on the day the exit polls (May 20) were published, but lost 0.97 per cent the very next day. On the day the election results appeared (May 23), the markets zoomed to an intra-day high of 40,100.5, but then promptly gave up those gains during the second half and ended 0.76 per cent lower for the day. Unless a trader was able to time his entry and exit around these events to perfection—which is no mean