How will markets react on election result day? Dinshaw Irani answers
«We believe that given that the budget is going to be in July, there is still a lot of steam left. Even after the election results are out, I think the run-up to the budget should be good,» says Dinshaw Irani, CEO, Helios MF.
There are two factors at play, one the short-term, which is from here to the election, which is 4th of June and then what happens to the market after that. In last three-four days, we have seen a sizable comeback in the markets, defence, railways, logistics, infrastructure, anything which has got to do with policy, that sector has seen a sizable rally. Do you think markets and some of these policy stocks are now priced to perfection and they are pricing in a near-perfect election scenario?
The fact is that we never took that into cognisance in the first place. What we were clear about was that we just need the government to continue. It did not matter whether they came in with a 300-plus or a 400-plus kind of majority, all we needed was them to continue and the continuity is what we were looking forward to and I think more or less that is a given.
So, I mean we can keep arguing about the two-thirds majority and all that, but still I think that is a given.
Unlock Leadership Excellence with a Range of CXO Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowChief Executive Officer ProgrammeVisitIndian School of BusinessISB Chief Digital OfficerVisit
Some of the banks are there with us and obviously some of the defence plays are there with us
