Market takes comfort from hopes of political continuity, says Abakkus' Sunil Singhania

Sunil Singhania, Founder, Abakkus Asset Manager LLP

The market could decline by 3 percent if the BJP wins with slightly lower-than-expected numbers, but could rise by 2-3 percent if the BJP secures a higher-than-expected victory, said Sunil Singhania, Founder of Abakkus Asset Manager LLP.

Sunil Singhania expects NDA to win approximately 295 seats once the counting concludes.

Commenting on the market dip seen on June 4, Singhania told CNBC-TV18, "A week ago, markets were expecting 300-325 seats for the NDA. However, the exit polls raised market expectations."

In the previous session, Nifty saw a significant upmove due to the exit polls. "Nifty was at 22,500 on Friday (May 31). Today, it is 21,800 as we speak, indicating a 3 percent drop from Friday's level. While it seems like a big fall from yesterday's level, the decline is less pronounced when compared to Friday," Singhania added.

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Singhania does not anticipate any further downside in the market. After falling over 8 percent intraday, both Nifty and Sensex saw a marginal recovery from the day's lows.

Singhania said that during the early counting, there was fear of a potential change in government. "Given the fact that we have been hovering around 295 seats for the last one, one and a half hours, it's providing confidence to the market. While the outcome isn't great or as high as expected, it still indicates continuity in the government," he said. This stability, according to Singhania, could have prompted investors to seize the opportunity and buy quality stocks.

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Singhania said that events such as today, where the market is eagerly waiting for the final election outcome will keep happening. He said that these events are bound to cause near-term spikes and shake investor's view. "But, as long as you're confident that this country is going to grow, I think it is obviously a good time to invest," he said.

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