Monday, June 3, 2019

Markets in Modi 2.0

The NDA and the BJP have won a resounding victory in the Lok Sabha elections. So, let us try and explore what the market dynamics will be going forward?

1. A strong government for the next 5 years means that economic reforms will continue to be carried out.

2. In Rajya Sabha, the NDA will get a majority by the end of 2020. This will further ease the passage of various reform measures.

3. Blue chip companies will be the way forward. safe returns will come from such stocks and the market caps of Indian companies will grow multi fold.

4. In the next 5 years, expect at least 5 companies to have a market cap of Rs 10 lakh crores.

5. with the focus on Infrastructure, infrastructure related stocks will do very well.

6. For any economy to grow, banking and the finance sector will have to do very well.

7. Consumption driven themes will continue to do very well.

Keeping all this in mind and with intermittent corrections, a peak of 16000 nifty is very much possible in the next 5 years. an upside for the nifty of 33 pc and for individual stocks multi bagger returns.

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