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    General Elections 2019: Clear majority for NDA means a rally in market, says Arvind Sanger

    economy | IST

    General Elections 2019: Clear majority for NDA means a rally in market, says Arvind Sanger

    The market would want a confirmation of the exit poll results and a clear NDA majority of 290-300 seats would be a big positive, Managing Partner of Geosphere Capital Management Arvind Sanger said.
    On the other hand if NDA is short at 250 minus, it would be a clear negative. So if NDA gets above 280 there would be a rally, but after a couple of days, it would be back to fundamentals, Sanger said in an interview with CNBC-TV18.
    When asked if he would be a buyer in case there is a majority for NDA, he said the hope of the market as seen in the rally of NBFCs is that a rescue package is coming. “Those are areas where there is immediate need of government action and if one is looking at a short-term pump then that is the area where we would look for action,” he said.
    However, in the medium and longer term, there is a difference between 2014 and today. In 2014, it was a new government and had weak majority in Rajya Sabha and States. "But now with a more established government, the hope is that they will hit the ground running and tackle some long-standing issues including land and labour reforms," he added.
    Talking about the portfolio, Sanger has noted that the midcaps have not under performed because of poll uncertainty and will not outperform because of election clarity. The under performance was because of weak economic data and disappointing earnings. "The new government may not be able to magically fix all the issues but it could mark a turning point in sentiment that the worse is behind us and in that sense it could be a virtuous cycle. If there was a sell off we would be buying what we have always wanted to buy. Even if there is a rally, we would buy some of the domestic oriented companies, some infrastructure names, in the midcaps," he pointed out.
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