No substantial bounce in domestic equity market even if BJP returns to power again, says Shankar Sharma

Vice-Chairman and joint MD of First Global Shankar Sharma is of the view that there will be no substantial bounce in the domestic equity market even if BJP returns to power again.
The equity market has seen a substantial bounce post the election results in the last two elections.
In 2014, a change in the Central Government triggered a rally across the board, with midcaps and small-caps leading from the front.
Moreover, when UPA-II came to power, the domestic indices had hit upper circuits on the day of election outcome.
But this time, Sharma says he sees no big move this time if the ruling party is re-elected and an opposite outcome could only be a temporary negative for the market.
“I don’t expect a substantial move in the market if there is a change in government.
The BJP led NDA governemnt coming back to power does not mean much for the market. If another government comes in, it might mean a bad thing for a temporary period, but the market might then end up thinking that maybe new thinking might not be such a bad thing. So we will wait and see,”
However, he admitted that the current environment is quite attractive for equity investment.
Sharma said he does not see any substantial fall in the indices from here on, unless the situation on the border worsens.
“I am a little worried about the current discussions and discourse. However, a 10-15 per cent decline in Nifty is unlikely unless the border unrest grows.
The stock market likes peace, calm, harmony, progress, and not talks on war,” he said.
The Market veteran said he was very optimistic about global equities, especially emerging markets. He also said that the Chinese market may outperform the emerging markets in 2019.

Author: ElectionAdda