🔷️2019 would be year of huge volatility as Its Election year.Till Election results would be out overhang would remain on markets. Historically also election years have always been volatile times for Indian equity markets.
🔷️Macro wise, India is in a better spot given that crude oil prices have corrected, thereby relieving stress on current account deficit. Also, the pressure on currency too has come off leading to overall financial stability. All these factors augur well for fixed income market as well.
🔷️Keeping aside the political uncertainty, markets have already corrected significantly And MAXIMUM damage has done in midcap & smallcap space.Only strong recovery in corporate earnings and strong macro-economic factors will push the index slowly after Election Results.
🔷️The Data from 2004 to 2014 shows those who have invested prior to ELECTION and stays invested even after ELECTION for next 6mth to 24 months have gained good returns.
🔷️MANY INDIVIDUAL STOCKS WHICH CAN BE MULTIBAGGER OVER A PERIOD OF TIME ARE AVAILABLE AT VERY REASONABLE VALUATION BUT ONE SHOULD HAVE CONVICTION TO HOLD INDIVIDUAL STOCKS AS MARKETS WOULD BE VERY VOLATILE IN SHORT TO MEDIUM TERM.
Disc– All views expressed are personal and Only For Study & Educational purpose only. consult your financial advisor before taking any position or decision based on above article.