We emphasise the importance of not basing investment decisions solely on electoral outcomes. Instead, focusing on investing in high-quality businesses capable of prospering regardless of the political landscape is paramount.
Investors turn cautious ahead of election results! Nifty, Sensex continue to bleed for second day in a row financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.
Uncertainty around domestic election results and the timing of US rate cuts dampened investor sentiments. The broader Nifty dropped 183 points to end at 22,704. Meanwhile, investors lost Rs 1.83 lakh crore. Sector-wise, Nifty Financial Services fell 1.65%, while Nifty IT, Private Bank, and Oil & Gas declined by over 1%.
Capital allocation has been concentrated in specific sectors, leaving many with limited funding. Fund managers currently favour sectors like PSU, industrials, and defence, while showing less enthusiasm for FMCG and auto.
Nifty Midcap index has surged 55.5% in last 12 months compared to Nifty s 22.3% gain. Experts caution against market froth in broader markets due to massive run-up. With election results approaching, largecaps could benefit from policy certainty post elections, attracting foreign investors.