Market veteran Madhusudan Kela has expressed optimism about Indian markets from a long-term view after majority of exit polls predicted a comfortable majority for NDA in 2024 elections. He said all factors horizoned perfectly for India - be it inflation, interest rates, tax collection, or GDP and suggested investors to not be afraid to flush in new money even if markets were at record highs.
"Even if you're new and considering investing with the Nifty at 23,000, don't be overwhelmed. Look at the markets with a long-term perspective, three years out. There's tremendous opportunity to buy if the positive backdrop continues," Kela said in an interview with CNBC-TV18.
Catch all the market action on our LIVE blog
The exit poll impact was visible in markets on June 3 early trade. Benchmark indices Sensex and Nifty hit new life-time highs of 76,738 and 23,338, respectively.
ALSO READ: BJP win to spark manufacturing, realty, infra rally; IT, consumption may falter: Analysts
Kela described this period as 'Amrit Kal' for investors and said that everything would fall in place if investors are structurally positioned on Indian equities. "All macro indicators are in favour of India and it stands well-positioned against global counterparts. Even if valuations have run up in majority of sectors, I believe there is significant wealth creation opportunity in the next 3-5 years amid stable earnings growth," he added.
Among sectors, Kela favoured capex-intensive, manufacturing, chemicals, pharma, and select private banks due to their underperformance seen in the past 2 years. "Within the manufacturing space, I like forgings and auto ancillaries. On the other hand, India+1 companies would be a good bet from the pharma space," he underlined.
ALSO READ: Nomura bets on improved foreign flows, lists out Modi 3.0 sectors to bet on exit poll euphoria
Kela kept the trading mantra simple from here on - position in right stocks with a long-term view and have the ability to digest intense volatility. "Focus on wealth generation instead of income generation," he stated.
Answering question on whether markets would see signifcant upside over the next 4 days, Kela said that there wouldn't be any significant downside.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
