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Market set for an 'explosion' but subsequent weeks would witness the final run for 'Modi stocks', says market veteran Sushil Kedia: Report
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Market set for an 'explosion' but subsequent weeks would witness the final run for 'Modi stocks', says market veteran Sushil Kedia: Report

| @indiablooms | 02 Jun 2024, 06:15 pm

Mumbai: Market veteran Sushil Kedia, who has been bullish on a third term for NDA, feels that the actual poll verdict might surpass the predictions and anticipates an "explosion" in the market, with almost all stocks rallying, but opines that the subsequent phase would be driven by stocks that have underperformed so far, media reported.

In an interview with Moneycontrol, Kedia said that the era of last-minute vote swings due to the allure of a bottle of cheap rum, a bicycle, or even a laptop is over, as people have understood that voting responsibly is in their best interest.

Kedia told the publication that most pollsters reached final predictions constrained by the limitations of statistical methods, and the actual outcomes could end up giving more seats to BJP and NDA.

This trend has been evident in the last 4-6 elections, where the winning side was underestimated in each instance across all exit polls.

The exit polls are broadly predicting 380 seats, but it could potentially be a mandate exceeding 400, a result that will only be confirmed on Tuesday.

Asked if he expects an upper circuit on the index on Monday, Kedia pointed out that “euphoria will be hitting the markets on Monday itself. Those who were scared, or hedged, will rush in on Monday.”

He revealed that his philosophy is " buy on anticipation, and take the cash, when the anticipation works out.”

“So, those who haven't bought yet, those who are underbought, let them participate. We are loaded up to our chin. And I'll never go up to my nose,” he added.

With this build up, the markets are headed for an “explosion”.

This “explosion,” he said, could mean “some stocks through the next week may go up 20%.”

“Even stocks that I expect are going to be getting into a state of weakness over the next 3 months or next 6 months, they will also get whipped up,” he noted.

So, the task now is to identify and monitor the larger trades over the next three months, while avoiding areas that are already experiencing euphoria and may face a final bull drag, he said.

Asked if a completely new set of stocks would lead the rally now, he said,  "Yeah, I see major down drifts on the charts of copper, aluminium, zinc, even gold, silver. Even Narendra Modi's return to power cannot defy that gravity. Once this election euphoria is out, it will be business as usual. The commodity businesses like metals, banking or even NBFCs, they will have their own stresses."

He cautioned against rushing towards “extremely stretched Modi stocks” without being rational as these stocks have been leading the euphoria and their finale will come in the next 3-4 days.

“So, stocks that have been weak and where newer green shoots will come, they will go up. This is the completion of euphoria. Stocks that have been already euphoric, After that, a solid correction in them should come,” he opined.

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