Lok Sabha elections: 'Investors should continue with their SIPs in current market', says Raamdeo Agrawal of Motilal Oswal Group
Raamdeo Agrawal of Motilal Oswal Group said SIP investors should ensure that each monthly SIP installment is credited to MFs. This practice is crucial for maximising investment returns and maintaining financial discipline.
- Jun 5, 2024,
- Updated Jun 5, 2024 3:20 PM IST
The benchmark stock market indices experienced a significant recovery following substantial declines on Dalal Street after the Lok Sabha election results. The Sensex successfully recaptured the 74,000 mark while Nifty increased by 600 points during the afternoon trading session. Specifically, the S&P BSE Sensex surged by 2.83%, closing at 74,115.50—a gain of over 2,000 points. Concurrently, Nifty rose by 3%, reaching a level of 22,542.20 after an increase of 657.70 points as of 2.30 PM.
Talking about the market volatility and investment in stocks and mutual funds, Raamdeo Agrawal, Motilal Oswal Group, on Wednesday said that there is a risk in the market at present and voters should tread carefully. In an exclusive interaction with BT TV, Agrawal said that after a period of elections and politics, market now will follow the economy patterns.
"In the last few months, people were drifted towards political developments. It is uncertain in politics. The recent fluctuations in the market due to the political developments, it is not due to any specific stock or company. If you see, economic patterns are not that volatile," Agrawal said.
Talking about investment through, SIPs, Agarwal said: "I would like to mention that investing through SIP is best for those who are new to the market or who don't understand the volatility in the market. In the last two days, many investors were confused on what to do in the coming days. Even I was planning my next few steps for a couple of hours. Therefore, new investors and risk averse investors should go for SIPs. Moreover, in the current volatile market, your SIPs should continue. You should not stop investing through SIPs."
He added that this is the golden period when they should be continuing with their SIPs. The message to SIP investors is clear: ensure each monthly SIP instalment is credited to MFs. This practice is crucial for maximizing investment returns and maintaining financial discipline. Your commitment to timely and consistent investments will lead to long-term wealth accumulation and financial security.
On Tuesday, the equity market experienced a significant downturn, erasing Rs 31 trillion of investor wealth. This decline followed emerging trends from the Lok Sabha election results indicating that the ruling Bharatiya Janata Party (BJP) was substantially trailing behind the target it had initially set.
During intraday trading, the Nifty 50 declined sharply by nearly 1,900 points, representing a 9 percent drop, while the Sensex fell by as much as 6,000 points. The market’s trepidation was evident, with widespread concerns regarding the composition and political stability of the forthcoming government.
The Nifty 50 closed at 21,885 on Monday, which was its lowest level since March 20, reflecting a drop of 1,379 points or 6 per cent. The Sensex, after bottoming out at 70,234, closed at 72,079, marking a decline of 4,390 points or 5.7 per cent. Foreign Portfolio Investors (FPIs) were net sellers to the tune of Rs 12,436 crore -- the highest single day selling by them.
The benchmark stock market indices experienced a significant recovery following substantial declines on Dalal Street after the Lok Sabha election results. The Sensex successfully recaptured the 74,000 mark while Nifty increased by 600 points during the afternoon trading session. Specifically, the S&P BSE Sensex surged by 2.83%, closing at 74,115.50—a gain of over 2,000 points. Concurrently, Nifty rose by 3%, reaching a level of 22,542.20 after an increase of 657.70 points as of 2.30 PM.
Talking about the market volatility and investment in stocks and mutual funds, Raamdeo Agrawal, Motilal Oswal Group, on Wednesday said that there is a risk in the market at present and voters should tread carefully. In an exclusive interaction with BT TV, Agrawal said that after a period of elections and politics, market now will follow the economy patterns.
"In the last few months, people were drifted towards political developments. It is uncertain in politics. The recent fluctuations in the market due to the political developments, it is not due to any specific stock or company. If you see, economic patterns are not that volatile," Agrawal said.
Talking about investment through, SIPs, Agarwal said: "I would like to mention that investing through SIP is best for those who are new to the market or who don't understand the volatility in the market. In the last two days, many investors were confused on what to do in the coming days. Even I was planning my next few steps for a couple of hours. Therefore, new investors and risk averse investors should go for SIPs. Moreover, in the current volatile market, your SIPs should continue. You should not stop investing through SIPs."
He added that this is the golden period when they should be continuing with their SIPs. The message to SIP investors is clear: ensure each monthly SIP instalment is credited to MFs. This practice is crucial for maximizing investment returns and maintaining financial discipline. Your commitment to timely and consistent investments will lead to long-term wealth accumulation and financial security.
On Tuesday, the equity market experienced a significant downturn, erasing Rs 31 trillion of investor wealth. This decline followed emerging trends from the Lok Sabha election results indicating that the ruling Bharatiya Janata Party (BJP) was substantially trailing behind the target it had initially set.
During intraday trading, the Nifty 50 declined sharply by nearly 1,900 points, representing a 9 percent drop, while the Sensex fell by as much as 6,000 points. The market’s trepidation was evident, with widespread concerns regarding the composition and political stability of the forthcoming government.
The Nifty 50 closed at 21,885 on Monday, which was its lowest level since March 20, reflecting a drop of 1,379 points or 6 per cent. The Sensex, after bottoming out at 70,234, closed at 72,079, marking a decline of 4,390 points or 5.7 per cent. Foreign Portfolio Investors (FPIs) were net sellers to the tune of Rs 12,436 crore -- the highest single day selling by them.