Ajay Srivastava, CEO of Dimensions Corporate Finance Services says that the stock market is witnessing a make-believe rally and not a pre-election rally.
He said, "This make-believe rally is good for the market and the investors. Nobody knows the reason behind this rally, so let us just enjoy. However, buyers must remain cautious and check the fundamentals of a company. "
Srivastava also added that if one has invested already then let the portfolio just ride up. The ones who have marginal stocks must get rid of their portfolio now barring a few sectors like aviation etc.
“The reality on the ground is different like automobiles are rising but there are fundamentals reveal a different picture. One can hope for long-term major revival in the auto segment but nothing on the horizon tells us that there is a revival happening anytime soon," said Ajay Srivastava.
He also says that the market discounting is rampant and the margins are under pressure. Investors should make their investment decision based on the future of GDP and not elections.
According to him, the markets won't fall heavily if the political outcome is the opposite of what was expected.