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Lok Sabha polls 2024: Should you buy Indian stocks on dip? What JPMorgan says
Indian equities rose to record high this year owing to a rally driven by robust economic growth.
Swings in Indian stocks during the polling cycle in Lok Sabha elections should be seen as an opportunity to buy, JPMorgan Chase & Co.’s private banking unit said. This comes as India kicks off nationwide polls from today (April 19) with votes to be counted on June 4 ahead of which Indian equities rose to record high this year owing to a rally driven by robust economic growth.
Alexander Wolf, head of Asia investment strategy at JPMorgan Private Bank wrote in a note, “We remain convinced of the structural growth opportunity in Indian equities. Long-term investors could be at least ‘neutral’ relative to the benchmark, and a strategic ‘overweight’ is warranted in our view.”
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Indian stocks are “not attractive valuation-wise but they also do not appear euphoric at the moment. For countries with high future growth potential and a track record of impressive earnings, a higher multiple makes sense," the note added.
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On April 18, the domestic equity indices closed lower for the fourth consecutive session and the Nifty fell below the 22,000 level. Sensex dropped 454.69 points to end at 72,488.99. The Nifty 50 index settled 152.05 points, or 0.69%, lower at 21,995.85.
