Poll verdict not a threat to reforms, but PSU stocks could see uncertainty, says ithought's Shyam Sekhar

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He said because there could not be too many parties in the coalition, the market would not be worried.

“But the market will have doubts about the ability to speed up reforms, to deliver on expectations of corporates and the responsiveness which generally the market has begun to take for granted,” he said, adding, “the leaders of the coalition will have to address these doubts".

Sekhar feels any selling over the next few sessions will be absorbed. “Because we are not exactly going into an era of extreme political uncertainty and we have dealt with that in the past quite well,” he said.

He feels PSU stocks will see the highest degree of uncertainty from here for a few months at least because too much froth had got built into the valuations.

“But I think other material sectors of economy like power, telecom which all are doing well and will continue to do well no matter who runs the country, will again come into favor. Consumption anyway is muted so I think and then the stocks if they fall again become attractive so there will always be pockets like this which will be attractive,” he said.

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