General Elections 2024: BJP not winning 400 seats won't be negative for market, says Naveen Kulkarni of Axis Sec PMS
Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS, believes that BJP not winning 400 seats will not be negative for the market at all. A stable and predictable political regime is most important right now. Therefore, irrespective of the outcome, it won't significantly affect the market, he explained.
Kulkarni further noted that if FIIs are not big buyers post election, as they have been net sellers recently, then any significant market movement post election results can be ruled out, and it is more likely to be business as usual. His Nifty target for December 2024 is 25,000. Edited Excerpts: Markets have seen some corrections due to volatility spikes but have also moved up post correction as investors saw opportunities at lower market levels.
Some corrections in markets are always good, and the normalisation of market volatility keeps valuations in check. Market volatility before May 2024 was quite sluggish, but it has seen a reversion towards the mean before recently spiking above 20 levels. Higher market volatility indicates higher risks, which means that the market is more likely to consolidate around the current levels.
BJP not winning 400 seats is not negative for the market at all. A stable and predictable political regime is most important right now. Therefore, irrespective of the outcome, it won't significantly affect the market.
FII investors look at markets globally. China's market valuations were cheap, and the government's focus on reviving growth has given investors confidence to allocate more capital to the market. Apart from China, other markets have also seen better returns in recent times, which has led to the movement of funds from India to other countries.
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