Udayan Mukherjee of CNBC-TV18 shared his views and outlook on markets as well as on Lok Sabha election results 2019.

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“I think the market let off a little bit of steam. I think a large part of the rally though is done because we did cover quite a bit of ground from 11,200-11,800 if you take last week’s rally as well. Quite a bit is done but the way the verdict is headed, it looks like a very clean sweep and certainly it is looking at this stage like a majority for the Bharatiya Janata Party (BJP) alone maybe even close to 300 for the BJP, which the market will like quite a bit. There is no getting away from that. Therefore, we will have a rally,” he said.

“My suggestion would be not to get carried away right now with this election rally because it is easy to get very swayed on the day of an election result. To say we have broken 12,000, there is no stopping this market and there is no looking back, I wouldn’t be in the camp which thinks like that. What I would say is if in the next six months, once this election euphoria dies down and the market becomes more rational, whenever there are corrections because earnings disappoint, the economy disappoints and you get the feeling that okay, elections are behind us but the going is still very difficult for the market fundamentally and you will get those pullbacks,” he added.

“I am hopeful that in the next two-three quarters, if we can fix the non-banking financial companies (NBFCs) and the liquidity mess, earnings will slowly start to inch up because we have had a 10-year earnings recession and using the weakness in the next two-three quarters, which will come – must that it may seem unlikely today, it may be a good time for investors to accumulate stock. So the closer you can buy to 11,000, the better for long-term investors but I would advise them not to get terribly carried away with the mood today,” said Mukherjee.

First Published:May 23, 2019 11:45 AM IST