Smart ways to invest and attain early financial freedom

I want to start by saying that am an AAP supporter – and I believe that we need a "change in the system"  - and the existing system is represented by BJP and Congress.
However I see a wave coming – a wave that will get Modi to power
Chetan Bhagat put it well in his column in TOI yesterday . I am quoting a part of this blog verbatim below
he represents practicality. Most Indians know that while it is good to remove corruption, nepotism, dynasty, oppression of women and a million other wrongs, it isn't easy. Things change, but slowly and over time. The leader many Indians seek is not idealistic, but someone who can do a fairly good job despite the muck in our society
As an investor, I have to remove my personal bias (for AAP in this case) and see the writing on the wall.  If I can forecast correctly, my investing decisions will be better.
The markets are already betting on a stable govt  - that means Modi, as AAP and Congress cannot provide stable govt in these elections. Most brokerages have upped their Nifty targets to 7000 to 8000. FII’s are starting to pour in money and the Rupee is starting to get stronger – it has strengthened  from Rs. 62.02 to Rs. 60.9 in the past one month.
If Modi comes to power, I expect the FII’s to pour in more money  and the  Rupee will get stronger (in the range of Rs. 58 by year end),
If that happens, it will impact our export sector. Our export industries - IT and Pharma, that are currently doing very well, will slow down a bit.  
If Rupee gets stronger, Gold will not do well -it was anyway not in favour this year.
If Modi comes to power - what will happen to Public sector banks? They are in bad shape now – but with economy picking up will they get back? SBI has gone up from 1490 to 1707 in the past one month (a 14.5% increase).
If Modi comes to power  - will Infrastructure sector do well?  L&T has gone up from Rs 1051 to 1219 in the past one month (a 15.9% increase)
What about Modi’s favourite sector – Tourism? Should we invest in Cox and Kings and Thomas Cook?
I do not have the answers – But I am searching. I Will surely share as I make up my mind and invest ahead of the curve in the coming 3-4 weeks.
I would love to hear from you in the comments section below – please do not make this a political forum of BJP vs Congress Vs AAP. Please comment on where to invest if Modi comes to power.

Author Description

S. G. Raja Sekharan

S. G. Raja Sekharan is a visiting MBA faculty, a mentor to budding entreprenuers, a wealth management consultant, an author of a book on Investing in India and the author of this blog.

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4 thoughts on “What will happen if Modi comes to Power

  1. The markets are in a on and off euphoric mode due to perceived wave, but the reality is modi is not a superman to solve the cancer of corruption by being omni present or reign in the inflation with a magic wand the economic muck left behind by the present govt runs so deep we need some serious cleaning. The disillusionment of the market in a short time if modi comes to power due to perceived inaction on micro issues would be a cause for concern. If upa comes to power is the time to enter and do accumulation for the long term. 

  2. Infrastructure and Modi…..true that Sir….I have always felt Modi as a base-sector person rather than an evangelist for sunrise/techno sectors……I have a hunch that in the short-medium term if Modi is elected PM…..stocks of the infrastructure and power majors might rally… it L&T, Adani, Gammon…..might even skyrocket to the 2011 levels….. But the intensity, that his presence is going to have in the long run….esp. Solar power sector…..that might be one of a kind…that India has never seen till date…..

  3. Sir, as stock market is directly related to news event & market timing is also of utmost importance. During this event of elections would there be volatility & what would be the right time to buy stocks pre elections or post elections ?
    Kindly advise sir

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