Hello everybody, The summer heat is on and elections are still going on generating more heat in the Markets. The opinion polls reveal that the NDA with BJP will win more than 250 seats. There is an opinion in the market that, the Market has already factored in the event of Modi becoming Prime Minister. If he does not Market will react negatively with a knee jerk reaction.
The Market thinks if the BJP wins, it will be bad for IT Industry, as the rupee is expected to become strong if BJP comes to power. Now, the rupee is already strong so, the IT stocks are down. There is an opinion to buy cyclical stocks like Infrastructure stocks, Manufacturing Industries, cement stocks and so on. But, I personally feel IT stocks need not be feared as the earnings till now have been good and if we follow the numbers and the business potential the rupee must not make a difference. As, many IT stocks have gone through the rupee cycle but still, have given good returns. But, the market mood also has to be considered so, it is better to buy or stick to cyclical stocks. Very selective buying has to be done now, as prices are very high. Today was the settlement day or last day for F& O, as tomorrow Markets are closed due to elections in Bombay, on Thursday 24th April. Invest with great care as many stocks have gone up, lot of value digging has to be done. Wish you all a Happy Trading And Investing.
