General Elections & its impact on Stock Markets in India
1st Feb 2019- “Growth centric budget, roadmap for next 10 years is insight. Trust me India is a Growth story.” This was my first comment to the question on union budget 2019. So where do we see market headed,So before that we must understand what has happened in the last year.
The year 2018 saw 2 corrections/ fall in the market, first in January-February & second one in September-October Market was falling. Once these corrections were complete and market started its bullish run again, this period from October 2018 to April 2019 was a good trending market, But was stock specific, few selected stocks performed but majority of the stocks were not performing as compared to the benchmark NIFTY.
However we could identify these actions in a timely manner and selected stocks gave returns of little over 50-60% during this phase of October 2018 to April 2019, even indices gave better trades during the similar time span. Let us understand what market have done in the past,
- In 2004 when the NDA coalition lost the elections the market collapsed 7.4% in few days and today again we are at our highest levels in a span of 15 years.
- In 2009 when UPA was elected to power, markets shot up 17.4% in few days and again corrected giving us an entry opportunity once again.
- In 2014 when BJP was elected full fledged in power, the markets opened gap up and succumbed to profit booking in few days time and today again we are near historic highs in 5 years time
So currently market looks to be set for the next upwardly journey, and a stable Government will help Growth in stock market in a more lucid manner, how one may benefit from this is if someone is a investor in market,
- Identify better sectors by comparing with the benchmark Nifty and selecting better performing stocks.
- Diversifying in few sectors to safeguard the capital to be invested, this controls the risk factor.
- Select better stocks from the sectors. &
- Know right time for investment in a particular stock.
If you do not understand how to comply with some of the above points then there is an easy way out.
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So to sum it up Growth Module Wealth Mantra Module will help you identify better investment opportunities but also help you manage your own portfolio, with the help of set rules and guidelines which help you make your investment decisions systematic.