He also added that depending on the outcome, one will see the market recalibrating its response post the event but it will not wait.
CNBC-TV18's Consulting Editor Udayan Mukherjee is of the view that domestic triggers such as general elections and corporate earnings will likely shape the course of the market going ahead.
On the earnings front, he said, “I do not think we should expect major surprises, positive surprises from the earning season and that is little bit of a fly in the ointment if you are trying to predict full year returns this time around.”
“Overall it might still be a Q2 kind of an earning season with maybe equal number of hits and misses and therefore not too many upgrades and that may just be the tone for the next 2-3 quarters,” he said on Monday.
Talking about elections, Mukherjee said, “The market will not wait for May and June to make a move. You saw that in 2014 as well. The market’s job is to try and price in what it thinks will happen well before. Therefore, expect a fairly significant market move in the months of March and April perhaps before the elections or going into May and then depending on the outcome which might surprise either way this time you will see the market recalibrating its response post the event but it will not wait.”
“Therefore, it’s futile for medium-term investors to try and tailor a portfolio to take advantage of pre-election and post-election moves. I think in such scenarios its best to stick to quality,” he said.Source: CNBC TV 18