Expert view: Market may see volatility after election; upside for gold, silver may be limited, says Damania of MojoPMS

livemint.com:

Sunil Damania, Chief Investment Officer, MojoPMS, anticipates potential market volatility after the Lok Sabha election 2024, especially if the BJP fails to exceed 350 seats. After the election, the market will shift focus to appointing the next finance minister and the forthcoming Budget, which could further contribute to market volatility, says Damania in an interview with Mint. The base case scenario anticipates the formation of a government by the BJP.

However, we anticipate potential market volatility post-election, especially if the BJP fails to exceed 350 seats. Once the electoral event concludes, the market will shift focus to appointing the next finance minister and the forthcoming Budget, which could further contribute to market volatility. We are at a record high, with India's market capitalisation reaching $5 trillion for the first time.

We sense that strong earnings growth and liquidity will push India's market cap to $10 trillion by 2029.Also Read: Bull market needs fuel by way of equity capital or debt: Shankar Sharma of First GlobalThe market prioritises consistency in policy actions. A Budget aligned with existing policies will be positively received. Employment generation is a key focus, with the market anticipating significant support for manufacturing to double its GDP share.