A historic mandate for the Bharatiya Janata Party-led (BJP) National Democratic Alliance (NDA) saw huge volatility in the markets on Friday.
They finally closed with gains, but the mood more significantly, is optimistic and hopeful of better days ahead. This win clearly demonstrates that the will of the people was to replace the government and give the opposition a chance.
A chance to change the way India has been governed. The increase in voting percentage and the first time voters has made this happen.
What next for the markets? That is the question on everybody’s mind. The markets have entered a new bull phase which could last anywhere from three to five years.
Good times and bull markets offer plenty of opportunity to make decent returns, provided one is selective. FIIs have been very bullish on India and have been investing quite an amount over the last few months.
In the last six sessions, they have invested R 10,000 crore, indicating how confident they are about the potential the Indian economy possesses.
The Indian rupee has been appreciating slowly but steadily and closed on Friday at Rs 58.80. I believe a range of 58-61 is where it should trade over the coming quarters as a very strong rupee is detrimental to our exports. It does help our import bill as far as crude oil is concerned.
Markets in the short term will be volatile without doubt but would stabilise in the next couple of weeks.
The interest from global investors in the largest democracy would rise going forward and with a clear mandate on their own for the BJP, means that decision making would be a much easier task.
The country needs to begin taking decisions at a rapid rate and ensure that the derailed economy is brought back on track.
I believe this would happen and the vision of the new Prime Minister would be available when the budget discussions start in about four weeks from now. A final word for investors would be that the time to invest is now and good times are here.
Photos: Ajay Devgn, Parineeti, Tabu at 'Golmaal Again' trailer launch
Photos: 'Dangal' girls Sanya Malhotra, Fatima Sana Shaikh's dinner outing
Photos: Kareena Kapoor Khan's grand birthday bash
Photos: Salman Khan, Daisy Shah spotted at the Mumbai airport
Photos: Rakhi Sawant to play Honeypreet in Ram Rahim biopic