Stock market today: After the Lok Sabha election results are not coming in tune with the exit polls, the Indian stock market is under sharp sell-off pressure. The Nifty 50 index has fallen around 1000 points, the BSE Sensex has tanked around 2800 points, and the Bank Nifty index has crashed over 2800 points during Tuesday deals. According to the stock market experts, this fall is entirely on the short-term sentiments caused by the Lok Sabha Election results below the market estimates. They said the market fall is short-lived, and we may see a sharp rebound as the Lok Sabha election results still favour the incumbent NDA government, and chances of government change still do not look possible. They advised investors to look at quality stocks that have worked on the Capex expansion in recent years.
Also Read: Why is Indian stock market falling today? — explained
Commenting on the stock market downturn, Avinash Gorakshkar, Head of Research at Profitmart Securities, views it as a chance for strategic investment. He states, “The current dip in the Indian stock market is a golden opportunity for bottom fishing. This downturn is primarily driven by sentiment and is expected to be short-lived, given the continued favorability of the Lok Sabha Election results towards the incumbent NDA government. If the current trends persist, the NDA government may secure a third term, ensuring policy continuity for the next five years.”
Offering insights into how a savvy investor could approach the current stock market situation, Sandeep Pandey, Founder of Basav Capita, suggests a watchful approach. He advises, “In a volatile market, even quality stocks can experience a downturn. This is when a prudent investor adds such quality stocks to their watch list. I recommend focusing on stocks that have demonstrated Capex expansion in recent years. After a decade of the NDA government in New Delhi, such stocks are readily available in the PSU, banking, energy, and power sectors.”
Stocks to watch
Regarding stocks to put under a watch list, Avinash Gorakshkar of Profitmart Securities said, “One can look at SBI, Canara Bank, Reliance Industries, Tata Power, Adani Enterprises, NTPC, Hindustan Aeronautics Ltd (HAL), Bharti Airtel, and Coal India shares.”
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 04 Jun 2024, 12:05 PM IST
