20 March 2019

Vote For Large Caps In The Poll Year

M Rajendran
Historically, equity markets have always shown a bullish trend immediately after elections. This trend has prevailed since the last four  general elections. As predicted, even this time, the mutual fund sector is at an all-time low and is going to get even worse with the election dates nearing. However, signs of what is in store were visible when the markets revived by a few notches immediately after state poll results were declared late last December. However amidst all this instability, analysts pointed out, large cap companies have always shown comparatively lesser volatility and their valuations have remained relatively reasonable over different market cycles, making it an all season choice even during the election year. Devang Mehta, Head - Equity Advisory, Centrum Wealth Management, highlighted that election years bring along a lot of volatility, making the markets nervous...
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