Retail investors should hold onto cash and wait for election results to make financial decisions

From Hindustan Times: 2024-06-01 08:04:08

1. With Lok Sabha Elections 2024 results around the corner, retail investors are anticipating the market’s reaction. Wealth advisors predict a possible correction if the BJP-led NDA secures fewer seats than expected, especially in small cap stocks and funds.

2. Experts suggest that post-election, there might be a large cap rally, and the RBI may consider slashing the benchmark rate later in the year depending on factors like the monsoon. Investors are advised to hold onto cash and wait for the election results before making any decisions.

3. The market’s reaction post Lok Sabha Elections could vary based on different scenarios, affecting benchmark indices like Nifty50 and BSE Sensex. A strong BJP majority is likely to result in positive market response, while uncertainty may lead to short-term volatility post weak performance by the ruling party.

4. It is crucial for investors to focus on long-term financial goals amidst short-term market volatility triggered by events such as elections. Experts advise making informed decisions, staying focused on financial goals, and crafting a solid investment plan to navigate through market uncertainty and fluctuations.



Read more at Hindustan Times: Lok Sabha Elections 2024: What should retail investors do after results on June 4? Experts suggest this