Market to get riskier ahead, says report

7
Spread the love

Market to get riskier ahead, says report

Mumbai: A new report has suggested wilder fluctuation in the stock market ahead, with the outcome of the general election less than a fortnight away.

Investors sentiments are already dented as the volatility indicator or the ‘VIX’ on Wednesday logged the highest level since September 2015.

Historically, this nervousness around the general elections has seen the Nifty move over 30 per cent in 2004 and 2009. It was 14 during the last general election when BJP came to power, said the HDFC Securities report.

“Market is likely to be very volatile from May 20 onwards on the outcome of the exit polls. Another round of volatility will be witnessed on the day of counting, May 23,” the report said.

The report projected that if BJP gets more than 272 seats, markets will rise sharply as “markets are not expecting BJP alone to get a clear majority”.

This will see the beaten down stocks to do very well. If an NDA-led BJP government comes to power, markets will react positively “as uncertainty will end”, but a negative response on the result day is to be expected if NDA fails to form the government as it an “unexpected outcome”.

The reports also advised the investors who hold large equity portfolios to hedge them through buying Index Put Options. “However one should understand that hedging is like an Insurance, which comes with some cost,” it added.


Spread the love

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here