On an earlier occasion, Ashwini Gujral had advocated the need for caution in the run up to the elections. In his latest interview in the ET, Ashwini Gujral has repeated the advice. He referred to the fact that in the last elections, the results were unexpected. Nobody expected UPA to win in 2009. Post that 20 per cent rally from about 3,600, the market rallied to about 4,600. From there, it corrected back to 3,900 post the results, which were considered to be blockbuster results. So there will be corrections, he said.
Ashwini Gujral emphasized that he did not agree with the philosophy that if investors did not buy right now and if did not buy post the election on the election-day itself, they will not get an opportunity.
He pointed out that the chances are that the buying will get exhausted around the election time and post that there will be a correction when people take profits.
So, Ashwini Gujral’s advice is that investors should wait for a correction and not jump in even on a good outcome of election results because the chances are that the correction that follows will also be a deep correction.
“Let us not try to gamble on some sort of an event like lottery ticket and do some sensible investing” Ashwini Gujral added in a stern tone. “For the moment, next four-five days, keep taking short-term profits because the markets are unlikely to breakout in any direction” he said.