Election Jitters! A 15-20% correction is okay, look beyond June 4: Experts
correction from current levels should not shake the confidence of investors and they should remain invested with a view beyond June 4, the day when the fate of the incumbent NDA government and the India alliance will be decided, experts opine. Post the event, the focus will get back to earnings, growth, and India's long-term economic potential, they argue.
A day before the final phase of polling, chips were down on Thursday, with markets falling over 150 points to the day's low of 22,540.90. Over the last five sessions, Nifty has corrected by 427 points or nearly 2%.
Motilal Oswal Financial Services (MOFSL) Chairman & Co-Founder Raamdeo Agrawal said that post-election will be a «very interesting time» though things may have extended a little bit and it is quite possible that the next quarter or two could be slow.
Even if the markets were to correct by 10-15% in this period, he would not mind them correcting 10% further. "...that absolutely is like it is a ground zero and then we start with a new administration and new thought process and new 100 days, new ambitions of the government, new ministers and they will come and run for their targets and things like that and then the new energy in the economy will also come," the MOFSL analyst said as he expects markets to accelerate to the new highs.
Mark Mobius, Chairman, Mobius Emerging Opportunities Fund also does not doubt that the correction will happen if the outcome be not as per Street expectations. In his view, Indian markets are due for a correction having
