Updated Jun 5, 2024 | 12:52 PM IST
Sanjiv Bhasin on Stock Market crash: On Tuesday, Sensex and Nifty logged the biggest single-day fall in four years. Both the indices crashed by nearly 6 per cent as BJP failed to gain majority on its in the Lok Sabha elections 2024.
Sanjiv Bhasin has said that Tuesday’s correction was ‘very healthy’ (Pic: Shutterstock/ET NOW)
Sanjiv Bhasin On Stock Market Crash: Ace investor Sanjiv Bhasin has said that reactions were overdone in the market and that some downside in the market is still there. Speaking to ET NOW today, he said that crude and a good monsoon will take back the markets to normal.
“There is some more leverage to be cut as excesses were created on Monday because of the exit polls. People leveraging in PSUs and so on the defence. I always held the view that defence and railways were overpriced to 2027 levels. It is a very healthy correction,” the ace investor said.
“You have seen the comeback of FMGC. We think insurance and IT will be better placed. Sectoral rotation will happen,” he said.
“This is a retail driven market and the retail investors are very sanguine. They are not either optimistic or pessimistic. They understand that we are in a market which is going to be more driven on macro. Oil is at a three-month low and dollar is below 104. Bond yields are at 4.33. Rainfall is expected to be good. Expect political stability in the next 48 hours… after a few days, it will be back to running the government,” he noted.
The ace investor added that “alliance governments are good for economy” and that “we many see some tax rate cuts”.
“Insurance stocks like HDFC Life, SBI Life looks good. I am bullish on Coal India and NTPC. Birla group stocks and IT counters will also perform well,” he said.
Earlier on Tuesday, in the biggest single-day fall in four years, benchmark stock indices Sensex and Nifty plunged by nearly 6 per cent as the ruling BJP failed to go past the halfway mark of 272 on its own. However, the BJP-led NDA secured a comfortable majority.
Reversing its Monday’s sharp gains of over 3 per cent, the 30-share BSE Sensex nosedived 4,389.73 points or 5.74 per cent to close at a more than two-month low of 72,079.05. In the day trade, the barometer tanked 6,234.35 points or 8.15 per cent to hit a nearly five-month low level of 70,234.43. The NSE Nifty tumbled 1,982.45 points or 8.52 per cent to 21,281.45 during the day. Later, it ended at 21,884.50, a sharp decline of 1,379.40 points or 5.93 per cent. Sensex and Nifty had previously declined by around 13 per cent on March 23, 2020 when lockdown was imposed due to the COVID-19 pandemic. Heavy profit booking in PSUs, public banks, power, utilities, energy, oil and gas, and capital goods shares dragged the markets into the deep negative.
