Technical Analysis

Buy right, sit tight

Motilal Oswal Modi-led BJP | Updated on May 18, 2014 Published on May 18, 2014

Change is indeed sweeping the country. With NDA emerging as a single largest party, a few post poll alliances would mean the ruling coalition would have near two-third majority in the lower house required to pass the most critical bills. The preconditions provide an ideal ground for Modi’s stewardship to lead the country out of the current state of the economy. To be sure he has his jobs cut out. First, would be settling down with a credible Ministry and Cabinet. Second, would be to present a budget that stays on fiscal consolidation path and yet creates room for business confidence to revive and growth to be nudged upwards. Third, would be to take up the pending reforms including tax reforms (GST/DTC), energy pricing, SEB losses and setting the ground rules for mining, land, labour and environment. Investors should follow ABC of investing i.e. buy Auto, Banking and Cement sector stocks and just forget them for few years.

The writer is CMD, Motilal Oswal Financial Services

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on May 18, 2014
This article is closed for comments.
Please Email the Editor