The market will see initial euphoria and then become rangebound post the Lok Sabha election results if the NDA wins, said Shiv Diwan of Edelweiss Securities in an interview with CNBC-TV18.
All exit polls pointed to the return of Narendra Modi and the NDA.
The Sensex and the Nifty posted their biggest one-day gains since 2009 to close the day at near record levels. Both the indices are not far away from their lifetime highs. Not only that, the Nifty Bank index hit an all-time high in trade. The Nifty Midcap index gained nearly 687 points to post its biggest one-day gain ever.
“I do believe that this will continue over the next few days as we actually see the announcement of the election result," Diwan said.
“If the NDA would come through, there would be initial euphoria and then I think markets would probably stagnate a little bit and play in a range. The macro concerns still persist, results have not been all that great, and liquidity still remains tight. So, these concerns continue to be there. There will be some stocks which will still offer upside and will outperform markets. So the likes of some quality banks, I think there could be some sector rotation into infrastructure, capital goods, engineering, and cement and maybe even a little bit of real estate,” he added.