Market may be volatile next one month due to elections: Geojit's Gaurang Shah

Investment services company, Geojit Financial Services, Sr. VP, Gaurang Shah, said on a show on Money9, that, markets will be volatile for next one month due to elections. He said, “This is only the second time that such a long duration election is being held in the country. Also, markets may see some consolidation because of profit booking in near term as we have seen a good rally in the past.”  Shah also added that FPIs may sell in coming times. It is to be noted that in April 2024, FPIs have largely remained net sellers of domestic equities. Before this, FIIs were net buyers in the first three months of the current calendar year.

Although, for long term, Shah sounded positive on India’s equity market. He sounded extremely positive on sectors like Railways, Defence, renewable energy, shipping, logistics and construction. Just like other stock market experts, he is also bullish on the India story backed by the government’s strong push on local manufacturing and exports.

On the construction sector, he said riding on India’s thrust on manufacturing and positive outlook for the real estate sector, cement demand will only rise in the country.

On Railways, Shah, said he has observed that in India, 80 per cent of the shipments in the country are made via roadways. Indian Railways lacks last-mile connectivity. But the government and the Railway Ministry is working to expand the last mile connectivity service in India.

Going ahead, he expects the heavy dependence on roadways for transport of goods to shift to Railways paving the way for lot of project sanctions in the industry.

Defence, renewables and railway stock rally not over yet: Shah

On tremendous rally in defence, renewables and railway sectors,  he said, “This story is of 10 years not of one or two years. This is because the government has got to do a lot of work in these sectors. Whether, private firms or government companies, both stand a chance to benefit a lot from government orders. The firms are going to see continuous increase in number of orders. The income is also going to continuously increase.

The voting for General Elections 2024 began on April 19, 2024.  It will go on till June 1 in different phases. Results will be declared on June 4, 2024. In the current month, daily volatility were seen in the markets on some occassions. But largely, over the course of the month, benchmark indices, Nifty 50 and Sensex 30 have gone nowhere and remained where they were at the beginning on the month. And Shah expects same kind of volatility next month also.

Monday, April 29, 2024, was another eruptive day in the market. Sensex 30 rallied 1.28 per cent and closed above 74,670 points. While, 50 companies constituent Nifty 50 rallied one per cent and closed above 22,643 points.