Ajay Tyagi, a fund manager at UTI Mutual Fund, is of the view that the outcome of Lok Sabha elections will have a short-term impact on the markets depending on who comes to power.
"The house has done a study on how different governments have performed from 1991 to date and broke it up in terms of the strength of the government and how markets have behaved in those five-year terms. The result showed that the strength of the government has absolutely no correlation to markets over a five-year period," Tyagi told CNBC-TV18 on Thursday.
“So, if you are looking for a short-term kind of view, depending on what happens on results days, the markets can move in either direction fairly viciously,” he said.
With regards to corporate earnings, Tyagi said, "In the last six years, the average corporate earnings growth has been 4.5-5 percent only and so, irrespective of who comes to power and keeping aside the economic policies that would come through, the fact that we have been at a cyclical low over the last six years, there would be a cyclical revival in corporate earnings provided nominal GDP growth would remain 12-13 percent," he said.