New Delhi: A bullish investors could take stock markets to a new high if NDA-led by BJP under Narendra Modi comes to power in the Centre. Angel Broking chief investment officer Rajen Shah feels that if NDA comes to power there is a possibility of Sensex touching 24,000 points by June end.
“I don’t think so that this 1,000-point rally which we have recently seen actually in the market is basically as most of the market men say discounting the formation of a Modi-led government at the Centre. The market is in fact cheering the exit of this non-functional government. A significant re-rating of market is on cards if we see the BJP led government coming at the centre,” he told a business news channel.
“A stable government will be taken positive by the market. Right now Sensex is 14 to 15 times the valuation and it may hit as high as 18 times the valuation,” said Dipen Shah, Head, private Client Group Research, Kotak Securities.
He said that a less stable government depen-ding upon the support of regional parties like TMC for its survival would be taken negative by the stock markets. SMC Global Securi-ties chief strategist Jagannadham Thunuguntla said a stable government will lead to clear decision making at the Centre. “If not, there could be a correction,” he said.
