Lok sabha Elections 2024 & Stock Market: Best strategy for Election result - 4th June 2024 | Stock market crash? | Modi again come in power? निवेशक 4 जून से पहले क्या Strategy अपनाएं? समझिए Gurpreet Singh Sidana- CEO Religare Broking Ltd से
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#sharemarket #elections #stockmarket #LoksabhaElection2024 #Votingday #ElectionsandShareMarket #Motilaloswal #ElectionImpactOnShareMarket #ElectionResult2024 #Stocks #ElectionStocks #narendramodi #congress #modivsrahulgandhi #bjpvscongress #lastphasevoting
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NewsTranscript
00:00 Looking at the nifty levels, there is no major uncertainty.
00:03 It's just that the volatility level is high.
00:04 Any investor should have some cash at any point of time.
00:07 If there is cash, then of course, there should not be a hurry to invest it.
00:11 Because there could be an opportunity to invest at a better point.
00:15 If all the exit polls are giving the same direction,
00:18 then it can have an impact on the market.
00:21 Where there are profits,
00:23 if we move in a lighter position, it will be better.
00:26 If long-term stocks are holding, fundamentally good stocks are there,
00:30 then there is no need to worry about them.
00:31 Defense, infrastructure, railways,
00:34 these are the areas which have been clearly working for us
00:37 and they are working for the growth and development of the country.
00:39 Hi, this is Bhavna and you are watching Good Returns.
00:42 It's a very important week.
00:44 Why am I saying it's important?
00:46 Because, look, Lok Sabha elections are going on.
00:49 The voting for the last phase is going to take place.
00:51 Exit polls will come after that.
00:53 And after that, finally, the result will come,
00:55 in which it will be known who will be the government.
00:59 So this is important because the share market is being seen these days.
01:03 There was a fear factor in the share market.
01:05 That fear factor has decreased.
01:06 The volatility that we were seeing a lot, has now decreased a little.
01:11 Investors have gained confidence.
01:13 There is confidence in the share market,
01:15 which we are seeing the result of.
01:17 That the market has reached its all-time high.
01:20 Another important thing is that this is the last week of May.
01:23 Nifty expiry is going to happen on Thursday.
01:26 So it's Thursday, it's Friday.
01:28 After that, we will have voting.
01:30 And after that, finally, our result will come on Tuesday.
01:33 So what should investors do in this?
01:36 Because on 31st May, GDP is also coming.
01:38 So GDP and the share market are also directly proportional to each other.
01:42 In this regard, this week is a very important week.
01:46 The most important thing in this is what investors should do.
01:49 What strategy should we adopt?
01:51 Whatever the situation is, the NDA government is formed.
01:53 The BJP is won by a clear majority.
01:56 Or the BJP does not win.
01:58 The NDA government is not formed.
02:00 In every situation, the reaction of the market will be seen differently.
02:04 And investors should also make their strategy in the same way.
02:08 So today in this video, we will try to understand.
02:12 We will talk from every aspect, we will talk from every situation.
02:15 We are recording this video especially for investors.
02:18 What strategy should be there in these 4-5 days?
02:20 With us, the CEO of Religar Broking Limited, Mr. Gurpreet Singh Siddhana is joining us.
02:25 He will give us a very good point of view.
02:28 He will tell us from the perspective of investors.
02:30 What should they do?
02:32 What can be the movement in the share market?
02:34 After that, the events will be there.
02:36 Because after the election, the major event will be of the budget.
02:39 So what strategy do you have to adopt?
02:41 To know, you must stay with us till the end of this video.
02:44 Hi sir, how are you?
02:45 Welcome to Good Returns.
02:46 Thank you so much.
02:47 Sir, the market is assuming that the Modi government will repeat.
02:52 Until there were 5 phases, there was a fear factor regarding the voting percentage.
02:57 But as soon as the 5 phases passed, the 6th phase happened, the 7th phase is coming.
03:01 So this fear factor also reduced.
03:03 There are 2-3 things in this, if we talk about this particular week.
03:08 So 2-3 things are very important in this.
03:10 First, there are 2 trading sessions.
03:12 And this is the trading session before the results.
03:14 Second thing, the GDP data is going to come.
03:17 May's Nifty is expiring, which will happen on Thursday.
03:21 So this is very important data for investors.
03:24 So if we look at it from the perspective of the share market, what is your view for this particular week?
03:29 How should the market prepare?
03:32 So the market has cleared its view.
03:35 The market is running at an all-time high.
03:36 Right.
03:37 So as we all know, the market always knows everything.
03:40 And that is visible in the situation of Nifty.
03:43 Now there is a little uncertainty.
03:45 People are a little worried about the election results.
03:49 Because the market is already running at such a high level.
03:52 So looking at that, many people have a view that profit booking should be done.
03:56 And we can see that because there are many data points coming, expiry is also there.
04:01 You said it right, the GDP number is also coming.
04:04 People are expecting the BJP government to come, because Nifty is saying.
04:09 But it will come from the same majority as it came before.
04:13 So all these things taken into account, the little selling that you can see, or the little that people are worried about, that is a part of it.
04:25 But otherwise, looking at the Nifty levels, there is no major uncertainty.
04:29 It is just that the volatility level is high.
04:30 Right.
04:31 Which will also get overcome by the time we get the exit polls and the results will come in.
04:36 Right.
04:37 If we look at the share market, because Modi government has served two terms, two tenures.
04:44 So what are your views on how Modi government's 10 years have been from the perspective of the share market?
04:49 So Nifty levels tell us that the markets have been growing continuously.
04:54 Nifty has grown at a rate of 18% compounded over the period of last 5-7 years.
05:00 Mid cap and small cap have been running very well.
05:03 The confidence that people have got from public sector undertakings, not only just stock price, because stock price is a barometer of their performance, and performance has improved.
05:12 All the policy decisions that have been made, I think all of that has become a euphoria.
05:17 It is telling us that people's confidence and the confidence of the markets has been very good during the Modi government.
05:23 So there is no doubt about that.
05:25 Especially if we look at the PSUs, the condition of the PSUs 10 years ago, how much better it has become.
05:31 So as I said, their share prices are reflecting something.
05:34 But what are the share prices reflecting?
05:37 The share prices are reflecting their performance.
05:39 And starting from the banks also, who are in the public sector undertakings, their profitability,
05:45 and along with profitability, how did that profitability come? Because of better asset quality.
05:49 So earlier in the banking sector, the public sector undertakings did not get that much premium,
05:56 they used to be on a discount, now that gap is reducing.
05:59 And similar is the case for a lot of other public sector companies which are into different other industries.
06:04 So the market's view is much better regarding those companies, and that is backed by better performance.
06:11 Right. The share market is known as a priest, the share market knows everything, whose government is which.
06:16 Sir, election results are a big event for the market.
06:20 But many times, 6 months before or 6 months after a major event, the market is in a normal state.
06:27 Long-term investors do not need to worry.
06:31 Now, since the election results are coming up, what would you advise?
06:35 On the day of the election results, on 4th June, the investor should have some cash with him,
06:42 so that he can deploy the results on that day. What would you advise?
06:46 So, usually, we believe that any investor should have some cash at any point of time.
06:51 Right.
06:52 So, if we talk about this particular event, if there is cash already, then of course,
06:58 there should not be a hurry to invest it, because there could be an opportunity to invest at a better point.
07:03 Right.
07:04 Now, if there is no cash already, that means, the investors already had very good stocks,
07:09 and they have invested on the occasion, so if there are some stocks on which a good profit is coming,
07:15 and they feel that their fundamental valuations have reached the level they should be at,
07:20 then if they book a little profit and get 25-30% level cash, then I think it will be a better choice.
07:27 We will understand this day-wise, which you have just explained.
07:32 Before that, I have a question.
07:33 The trend is that on Monday, there is a slight correction in the market.
07:38 Now, you see, on 1st June, when we have to do the last phase of voting, that is on Saturday.
07:44 The exit polls will be on that day.
07:46 Yes.
07:47 The exit polls will be clear on that day.
07:49 The reaction that we will see on the market will be seen directly on Monday.
07:53 So, what do you think, how will the market be on Monday?
07:57 That means, when the election results will come, one day before that,
08:01 will we see this trend, the correction trend, or the way the market is at an all-time high,
08:07 now, we are talking about last week, will it continue?
08:10 So, the volatility index is telling that a lot of action will be there.
08:15 Hmm.
08:16 This is very clear.
08:16 Hmm.
08:17 Now, the impact of this, like you connected it with the exit polls,
08:21 we have seen many times that exit polls come in many ways.
08:24 Yes.
08:25 There is not just one exit poll.
08:26 True.
08:26 Now, if all the exit polls are giving the same direction,
08:29 then its impact can come on the market.
08:33 Hmm.
08:33 Now, if there is a variance in that too,
08:35 then the market may also not take the impact of that.
08:39 Yes.
08:40 So, there could be a variance.
08:42 And we have seen in some of the Rajya Sabha election results also,
08:45 that the outcome from the exit polls is completely different.
08:48 Hmm.
08:48 So, like we believe and understand that the market knows everything,
08:52 so, the market has to some extent discounted that the Modi government will come again.
08:56 Will come.
08:57 Right.
08:57 Now, if there is a doubt on the coming, then that will eventually be known in all four ways.
09:03 Hmm.
09:03 The market does not have a doubt on that.
09:05 Hmm.
09:06 So, its impact will come on three or four, my view is that its impact will come on four.
09:10 Unless, all the exit polls give the direction that the Modi government is not going to come,
09:15 then its impact will come on three.
09:16 So, you believe that the three will not get that much major impact,
09:19 but the four will get the impact.
09:20 No, there is a difference.
09:20 I said that if all the exit polls give the direction that the Modi government is not going to come,
09:25 Hmm.
09:26 which the market is not accepting,
09:28 Not accepting.
09:28 then its impact should come on three.
09:30 Hmm.
09:31 But if there is a variance there also,
09:33 and the market is accepting that the Modi government will come,
09:36 Hmm.
09:36 then its impact may not come on three,
09:38 but it will come on four.
09:39 Four.
09:39 And the four will come from the actual results.
09:40 Four.
09:41 Yes.
09:41 Right.
09:41 Right.
09:42 Right.
09:42 (In Hindi)
09:44 (In Hindi)
09:47 (In Hindi)
09:49 you have two days, one is for 30th, and the other is for 31st, Thursday and Friday. What
09:56 would you suggest to defensive and aggressive traders? Should they book profit in these
10:02 two days or should they wait for June 3rd and 4th? What would you suggest so that the investors
10:10 watching this video get a suggestion of what they should do?
10:13 I would say that fresh positions should be avoided now because the volatility level is
10:20 very high. So, before taking fresh positions, one should think about it. As far as those
10:27 who have already invested or who are running open trade positions are concerned, because
10:32 there are many other data points like expiry, GDP data points and many other things. In
10:39 that case, where profits are visible, it would be better to take a light position. There
10:46 should not be a high leverage position. If long term stocks are holding, fundamentally
10:51 good stocks are holding, then there is no need to worry about them.
10:54 Right. And the biggest thing in the share market is patience. You should be patient,
10:59 calm and not worry too much. Sir, if I talk about you, what do you think, which sectors
11:06 and themes are you bullish on?
11:10 So, when you ask me, you are asking me or the company view?
11:13 I am asking your view.
11:15 My view. So, my view is aligned with my company view that we should focus on those sectors
11:19 which are working for the development of the country. And those themes have been the most
11:23 popular in the last 4-5 years. I think no prizes for guessing, infrastructure is one
11:29 of them. We have seen the kind of road infrastructure which has improved. We have to think of railways.
11:34 We have to also think about defence. India, where most of the time we have been importing
11:39 defence things, now we have started exporting that. So, defence, infrastructure and railways,
11:45 these are the areas which have been clearly working for us and they are working for the
11:49 growth and development of the country. Now, other than that, one sector which is there
11:54 important for everyone is banking because without which you cannot do anything.
11:57 True.
11:58 So, looking at India, our basic necessities, if I want to add one last sector, then it
12:04 will have power because it will always be needed.
12:06 It will always be needed.
12:07 So, if we focus on these 4-5 sectors and look at India's demographics, I think these
12:12 sectors will always be there.
12:14 What are the risks you are seeing for the market in the exit poll?
12:18 The risk in the exit poll is only that whether the BJP government will come back or not.
12:24 Right.
12:25 So, having said that, if you look at the last 10 elections, you will see that even after
12:31 8 market elections, the gap has increased a little.
12:34 It has increased.
12:35 So, as long as there is a political stability, which we believe that if the BJP government
12:41 comes, there will be political stability. Now, this does not mean that if the BJP government
12:46 does not come, there will be no political stability.
12:48 Now, we have a situation where markets will not behave in a right manner in growth and
12:54 growth phase if there is an unstable government.
12:58 An unstable government can only impact the market negatively.
13:02 Otherwise, if there is a stable government, the policies that have already started, the
13:07 amount of investment on infrastructure projects, the amount of growth that we have already
13:11 worked on for the last 10 years, I think no stable government will want to interfere in
13:14 that.
13:15 Absolutely.
13:16 So, on one side we say that the Modi government should come back, which we all believe that.
13:21 But if there is a stable government, we can expect that the markets will continue to go
13:25 up.
13:26 Right.
13:27 Now, if we talk about 4th June, in simple words, what should investors do on 4th June?
13:35 Investors should make sure that the stocks that are available at a good price, should
13:41 not wait for the price to fall further.
13:43 If it falls further, then?
13:44 Yes.
13:45 Then they should buy them.
13:47 And in the long term, they should think that now this event is over, now we have to look
13:51 at the further events which are going to be budgeted.
13:53 Right.
13:54 And which is the next event which people will start talking about it from 5th June.
13:57 5th June.
13:58 5th June.
13:59 Right.
14:00 Because if we talk about 5th June, let us talk about that particular week.
14:05 When our results will be announced, then we can see a slight downturn throughout the
14:09 week.
14:10 You told about 4th June.
14:11 Now, for 5th to 8th June, in that particular week, how do you see the share market and
14:17 what should be the strategy of investors for those 3-4 days?
14:21 I think the volatility index will come down.
14:24 I mean, the uncertainty will settle once.
14:27 It will settle.
14:28 So, it may take 1 or 2 days for the market to hold its situation.
14:33 But, sooner or later, people will start talking about other things which are going to come
14:38 after that.
14:39 And of course, the big thing is going to be budget and then the quarterly, first quarter
14:42 results.
14:43 So, people will start paying attention to these two things immediately.
14:46 I am assuming that in that case, we will get a clear majority and the government will be
14:50 stable.
14:51 Because then people will start talking about what the Modi government or any government
14:54 is going to do in the budget.
14:55 What will they do in the budget?
14:56 So, once the volatility ends, then people will come back to the basics.
15:00 Right.
15:01 Right.
15:02 Right.
15:03 We often talk about what should investors do to make a profit, what should they do,
15:07 should they book a profit, should they hold, should they buy?
15:10 Now, we will know that, because this day is very special, this week is very important.
15:16 What are the things that investors should avoid to avoid risk, to avoid loss?
15:23 They should not panic too much.
15:26 If investors have invested in any specific companies, after looking at the fundamentals
15:33 of the company, then with all this impact, no change is going to happen to the fundamentals
15:38 of that company.
15:39 So, if we believe in the fundamentals of a company and its business model, then this
15:44 short-term volatility is not going to impact the long-term prices of that particular company
15:49 or the markets.
15:50 Right.
15:51 Right.
15:52 So, these are short-term things that will go up and down for some time.
15:53 Traders can be impacted on this.
15:54 Investors do not need to worry much about this.
15:57 Right.
15:58 Right.
15:59 You explained it very well.
16:00 There are brokerage reports that are coming up, in which a lot of things are being said.
16:04 Someone is saying that the level of 272 will be touched, someone is saying 300 par, 400
16:09 par has not been said yet, which is not coming from the Modi government, but up to 330,
16:14 that thing is being predicted that so many seats can come.
16:17 In such a situation, the things that are coming up are coming up with specific shares and
16:22 also with sectors.
16:23 If I believe the report of brokerage firms, then there is defense in it, which you also
16:28 talked about, you talked about infrastructure, apart from this, capital goods, metal and
16:33 mining.
16:34 All the brokerage firms are looking very bullish on all these sectors.
16:38 If I ask you to choose, sir, which sector will you choose?
16:43 So, I have already told you about my sectors, which have a little overlap with the brokerage
16:48 reports.
16:49 It may not be same like anybody else, because I mean everyone will have their own choices.
16:53 Right.
16:54 If you look at the sectors again, then all these sectors are linked with the growth of
16:59 the country.
17:00 Right.
17:01 They are linked with the infrastructure, so, independently, they all have overlap with each
17:04 other.
17:05 So, I think, no matter which sector, as long as they are working for the growth of the
17:10 economy, the top few companies should be focused on them and their investments should be kept
17:16 for long term.
17:18 And in short term, traders should worry, investors should not worry.
17:23 The way I have spoken to investors over the last 10-15 days, I can see a height of panic
17:30 in everyone.
17:31 Okay.
17:32 And that height of panic is more because Nifty is at an all-time high.
17:36 People always think that the price will fall.
17:39 Yes.
17:40 And if Nifty was at Rs. 21,000, people would have said that it is a good price, so, we
17:44 should buy it.
17:45 Yes, we should buy it.
17:46 But we always forget that Nifty can go even higher.
17:49 So, there is no reason that we should think that Nifty cannot go beyond that.
17:53 Right.
17:54 Nifty is at Rs. 23,000 today.
17:55 Nifty will go up to Rs. 25,000 and Rs. 30,000 as well.
17:57 Yes, right.
17:58 So, it is not important why it is going up.
18:00 What is important is that it will sustain and when will it go down.
18:04 And that will eventually depend on the performance of the companies.
18:07 Right.
18:08 Right.
18:09 A report came from the side of Motilal Oswal.
18:11 His chief had said that Sensex and Nifty will cross the 1.5 lakh level.
18:17 He gave different timings for that.
18:19 He also told us about the situation.
18:21 He said that if there is any negativity, it will take time from 2030 to 2040.
18:28 What do you think, Sensex and Nifty, Nifty has a long time, when will it reach 1.5 lakh?
18:34 If I talk about Nifty, it will also go up to 1 lakh.
18:38 Once I was listening to a speech by Rakesh ji and someone asked him about Sensex's 1 lakh.
18:44 Yes.
18:45 Do you remember that?
18:46 Yes, I remember.
18:47 He said in a speech that why are you thinking about Sensex?
18:50 Nifty will also reach 1 lakh.
18:51 Yes.
18:52 Everyone has to go.
18:53 Yes, everyone has to go.
18:54 But, the important thing is when will it go.
18:55 Yes, right.
18:56 No one knows the answer to that.
18:57 (Laughs)
18:58 Rakesh bhai does not know the answer and we do not know the answer as well.
19:00 Anything can happen.
19:01 Nothing can happen.
19:02 I said that going is certain.
19:04 Yes.
19:05 When will it go is not certain.
19:06 Yes.
19:07 So, that depends on a lot of things.
19:08 And we will all know how it will go.
19:11 Absolutely.
19:12 We were talking about the budget.
19:13 You also said that after the results, the investors will be focused on the next event.
19:19 The next event is the budget.
19:21 Yes.
19:22 What do you think, what will be the focus of the government in the budget if the same
19:26 government, the Modi government, retains?
19:28 I think there will be a continuation of the policy framework.
19:31 The stance they have taken in the last two governments, I think it will continue.
19:35 Along with this, there is an agricultural sector which I think additional focus will come.
19:40 And that should undoubtedly happen.
19:43 And the demand in the agricultural sector has been less.
19:47 Which I believe that, I mean, we have seen green shoots in that.
19:50 And they will do whatever is required to improve that demand.
19:54 And I think that will definitely be the focus of the budget.
19:56 In addition to what all sectors, what I mentioned, which are anyways going to be important for
20:00 the budget also.
20:01 Right.
20:02 What impact do you see on the share market when the budget days pass?
20:06 Or like, we just saw high volatility when our first phase elections started.
20:13 So, how do you see the share market in the 100 days before the budget?
20:18 So, the markets will have more things at that time.
20:21 Because at the time of the budget, we will also start getting quarterly results.
20:24 Right.
20:25 Right.
20:26 So, on that, we have to see that, I mean, geopolitically also, what all factors are coming in.
20:29 What data points are coming on the US, what are the trends of their elections.
20:33 So, at this time, to say that the market will only see the budget at that time, it may not be true.
20:38 Because, even today, when we are talking about the election results, we are talking about
20:41 many other things which can impact at this time.
20:45 So, it will not be only budget.
20:46 But, budget will be one of the biggest things.
20:48 And that will depend on once the budget, last 100 days of budget starts coming.
20:53 So, what are the trends at that time, we will have to see at that time.
20:56 Okay.
20:57 Again, I would like to know from the perspective of investors, that if we have to make a strategy
21:01 after the results, if we have to make a strategy for the budget, then what strategy should investors
21:05 make?
21:06 Investors should focus on the sectors which we have talked about, which we have seen a
21:10 lot of movement in the last few times.
21:13 Because, further changes or policy decisions should come in that.
21:17 And those decisions will obviously positively impact all the investors.
21:21 Right.
21:22 Sir, just yesterday, a data has come out.
21:25 I will read the data once.
21:27 In May, we have seen the selling of FII.
21:31 According to the provisional data of the National Stock Exchange, except two sessions, in all
21:35 other sessions, foreign institutional investors have sold or bought in the Indian share market.
21:41 In this month, they have taken out 2.97 billion dollars from the Indian market.
21:46 After India, there is Indonesia, Vietnam, Thailand, where we have seen the most selling
21:51 of FPI.
21:52 But the most important thing is that in Taiwan, we have seen the most inflow of FPI, that is
21:57 around 6.27 billion dollars.
21:59 After this, if we talk about May, in South Korea, Malaysia, there is an inflow of FII.
22:05 So, what is the reason behind this, that it is outflowing in India and there is an inflow
22:09 in Taiwan?
22:10 So, I think, we should not make any view on this, particularly, while looking at a month.
22:16 Okay.
22:17 Because FII has been continuously investing in India.
22:20 And if we look at the economy of this level, which is of our size, then they do not have
22:25 many options.
22:26 So, FII has definitely done the selling and there is no reason to debate on that, that
22:31 they have done the selling.
22:32 There could be multiple reasons for that.
22:34 They may be doing profit booking and there is lot of uncertainty.
22:37 Elections.
22:38 There could be election results, that they feel that if there is a profit already on
22:41 the table, why should not we leave it.
22:43 But at the same time, India market is not entirely dependent on FII now.
22:47 You see the kind of number of Demat accounts we have, the kind of new generation investors
22:51 are coming in now and they are investing the money.
22:53 So, DIA is continuously investing.
22:55 True, true.
22:56 Our SIP money, our mutual fund money, that data is visible, that money is being added
23:00 continuously.
23:01 So, our dependency on the FII money is not that much as it was earlier.
23:05 And if FII is doing its profit booking for XYZ reasons, then they may have a reason to
23:11 do that.
23:12 One, it could be volatility, it could be election results or maybe they have to show some profits
23:16 over there.
23:17 So, they may come back to us.
23:19 So, do you think that they will come back after the results?
23:24 What is the choice?
23:26 If you look at the large economies, India is one of the better economies for them which
23:30 can give them continuous sustained growth.
23:32 And if you leave aside the small economies, if a big economy like India can give them
23:38 such growth, which other economies cannot give, then they can delay the investments
23:44 but they cannot ignore India for any reason.
23:47 And also, the Indian population is investing on their own, I don't think that FII has
23:52 any choice to not invest in India.
23:55 So, whether the Modi government retains or not, it can be their return.
23:59 Do you think so?
24:00 So, India is going to grow irrespective of any government as long as the government is
24:06 stable.
24:07 So, for that reason, if there is no political uncertainty and there are no global scenarios
24:13 which are impacting the growth of the capital markets, I think India is going to grow.
24:18 What is the impact of a stable government on India's growth, on the growth of any country
24:25 or on its market?
24:28 Is it important to have a stable government in any country?
24:33 I think it is extremely important because the government will be more focused on policy
24:36 and work.
24:37 And while I am saying stable government, there is nothing better than continuity of the government
24:42 and especially when we have such a strong performance for the last two governments.
24:46 So, on a larger scenario, I said stable government.
24:50 But the better scenario would be that the same government continues because we have
24:54 seen such a strong growth of the economy, we have seen the strong growth of the capital
24:57 markets.
24:58 So, if we look at it from that point of view, we will get a good benefit if the same government
25:03 continues.
25:04 Now, your question was about the impact of a stable government on the markets.
25:08 Because if there is a stable government, then they will not have to think about whether
25:12 the government will remain or not.
25:14 And all the focus will be on work and policies will continue.
25:17 They will have to showcase their impact and performance.
25:21 So, from that point of view, having a stable government in any country and more so in a
25:26 democratic country like ours is extremely important.
25:29 Let us assume that the Modi government does not get a clear majority, let us assume 272
25:33 seats.
25:34 So, in that case, what will be the reaction of the share market?
25:38 So, I do not think so that people have any doubt that NDA will not form the government.
25:44 People are thinking that whether BJP at its own will form the government or not.
25:48 So, if BJP is not able to form the government but in a coalition which they are able to
25:52 form the government, I think they have a history that I am sure they will be able to still
25:55 sustain and maintain.
25:57 If NDA itself is not able to form its government, then we have discussed the situation that
26:02 anything can happen and in that case, if there is political instability, then the market
26:06 definitely will be worried.
26:08 And that is the only scenario where a lot of people are actually worried at this moment.
26:13 But the market is not worried.
26:15 If the market was worried as a whole, then it would not have been at 23,000.
26:19 Very true.
26:20 What will be your last message for investors?
26:22 My last message for investors will be that they should not panic.
26:26 And we are talking about investors, we are not talking about traders over here.
26:30 So, investors should not pay attention to all these things.
26:34 They should always look for good quality stocks whenever they get an opportunity.
26:38 Investors should be aware that if there is volatility and for some reason, stocks fall,
26:43 then it is an opportunity to buy rather than sitting on the sidelines.
26:46 Right!
26:47 And we always make a mistake that when the market is falling, people don't buy.
26:51 And when it is rising, people sell and at that time, they don't buy.
26:55 Right!
26:56 They sell at that time.
26:57 So, an excellent example of that was when COVID happened.
27:00 During COVID, when our Nifty fell by 6000, how many people bought at that time?
27:07 I remember very well that all the people who called me,
27:11 those who never invested in the market, I bought all their blue chips.
27:15 I see!
27:16 And I told them that if they don't buy in such a panic and if they have never come to the market,
27:22 then when will they buy?
27:23 And I think all of them earned good profits.
27:26 Having said that, your question was what should investors do?
27:30 So, investors should not be afraid.
27:32 Like I said earlier that you are investing in companies, you are not investing in political parties.
27:38 Very right!
27:39 So, when you are investing in a company, then there is no effect on the health of the company.
27:42 Absolutely!
27:43 All this short-term volatility can impact traders because they have to close their positions.
27:50 They have to book their profits in less or more.
27:53 But if an investor invests in a company without any leverage,
27:57 then the fundamentals of the company will remain the same.
27:59 And as I said, in the last 10 elections, there were 8 such elections,
28:04 after which the market has always been strong.
28:07 Yes, that has all been recovered.
28:09 There is a fundamental reason that India is shining, India is growing.
28:12 So, there is nothing to be afraid of.
28:14 Absolutely!
28:15 Thank you for the insight, Sir!
28:17 Thank you for giving your time.
28:18 So, from this whole conversation, the thing that has come out for investors is that
28:23 whatever the result, the government should be of anyone, investors should not panic.
28:29 First!
28:30 Second, you have to have patience.
28:32 Whether it is a budget or the result of the elections, whatever it is, you should not panic.
28:37 You have to move forward with patience.
28:39 That's all for the video.
28:40 I hope you liked this information.
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