This time around, the election has gained prominence in light of Indias rising importance in geopolitics, its leading position in emerging markets, and the governments aspiration to make India the worlds third largest economy from the current fifth position.
Neeraj Gaurh of Axis Securities advises investors to balance market excitement with geopolitical risks. Markets may correct 5-8%, but investors can deploy lump sum investments in good stock ideas when they have valuation comfort, when growth is accelerating, or when RoEs are improving.. Cyclicals are driving earnings growth, and banking underperformance may reverse when liquidity conditions improve.