Narendra Modi's coronation: Stock markets not disappointed

Prime Minister (PM) Narendra Modi's Cabinet includes 45 ministers, and this is roughly 40 per cent smaller than the outgoing UPA Cabinet.

Though officially at the time of writing this article exact portfolios were not announced, the hierarchy clearly shows that the key ministries, as far as the stock market is concerned, is on expected lines.

There is no reason for markets to either feel disappointed or elated.

The PM and his Cabinet would get down to serious business right away and what one reads on the social media about ministers requiring to work 14 hours or more per day is surely something new.

In case, this happens, one could be sure that pending paperwork will disappear in course of time.

Coming to markets, what we saw today was unnecessary panic and certain amount of well-needed correction in the broader market. Going forward, markets would remain in a healthy trading zone and individual stocks and sectors would move with performance.

There is no reason to panic whatsoever and fundamental stocks will perform.

Markets have now entered the trading zone where 7,100-7,550 is the range for the Nifty till Budget discussions begin.

May series will expire in just another three days and with a sharp runup of about eight per cent in the current month so far, bulls are quite happy.

A piece of advice to investors: use dips to buy stocks which are fundamentally solid and come from PSUs and infrastructure.

(The writer is an investment analyst)

Courtesy: Mail Today