Lok Sabha election results: Basant Maheshwari warns PSU stock holders of downtrend, says to 'analyse shares'
Stock Market Crash: Emkay says market correction not deep enough, advises to stay away from PSUs, Capital GoodsHowever, Maheshwari anticipates that all the PSU stocks, which were outperforming so far, are likely to go down. “Stocks, whether it from defence sector, renewable energy or any other PSU, which were outperforming earlier, are likely to witness a downward trend.
I advise the investors to remain cautious and analyse accordingly," Maheshwari said.Brokerage firm UBS also released a report suggesting investors to switch from PSUs to FMCG. Emkay in its report stated that it anticipates a short-term market derating because of a greater perception of risk.According to the brokerage, PSUs and capital goods are the most susceptible industries, therefore it will avoid them for the time being.
However, Emkay forecasts a significant comeback for value and FMCG retailers and anticipates a rebound in demand.Maheshwari recommends stagger investment in the coming days due to volatile market. In an earlier video, he suggested investors to infuse in parts - before and after the elections.“If you have the money, carefully invest in the staggered manner, a little before the elections and a little after the elections," he said.Also read: Will PSU stocks face more sell-off pressure after a 25% drop?Upon asking when the market is likely to recover, he said that the investors should remain focused as the market will soon recover, adding 'we just have to hold on to it'.The general elections in India came as a bad surprise, with the BJP falling well short of a majority and the incumbent NDA expected to return, but with a smaller majority.
The Indian markets experienced a decline of over 6 per cent as a result. Milestone Alert!
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