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Delhi elections results and Indian market

by By Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd. 10 Feb 2015, 12:15 am

An anti-corruption party is headed for a stunning victory in the Delhi state elections in a huge setback for India's Prime Minister Narendra Modi. We are expecting that the reform process will not stall, Its good to have AAP on the winning side in Delhi as for this will act as a counter mechanism, AAP in Delhi and BJP at centre this will help drive the reform process on a track.

Both the parties will try to prove themselves, AAP being a maiden party will try to give their best and overcome the failures of past. The market will continue to be volatile for time being as it has already discounted the news and has been giving correction since past few days. In our view regarding the correction in the market after result outcome, if we see the fast few days movement then we can figure it out that market has already corrected around 8 % as the news has already discounted. 

So further we didn’t see any such significant correction in the market on the down side, market will continue to be volatile and likely to remain in consolidation phase for the next few trading sessions. Investors should concentrate on fundamentally strong companies with great long-term growth potential and use the strategy of buying in dips.