Stock indices raced upwards on Tuesday on the back of exit polls showing that the BJP-led NDA is expected to form the next government. The benchmark Sensex crossed the 24,000 level for the first time and ended at a new closing peak of 23,871.23, gaining 320 points. With this, the Sensex has now climbed over 1,500 points in the last three days.
Even as the markets are gripped by euphoria, experts recommend first-time investors to resist the temptation of making a hasty dash into equity investments in a big way. Those already holding stocks could consider staying invested if the election results lead to the formation of a stable government. “No one will benefit from this rapidly rising market — not with speculation and lump sum investments; so don’t get excited at the state of the market right now. If you want to start investing in stocks at this point, the way to do it will be to plan to buy stocks or mutual funds in fixed-sized doses at regular intervals,” says investments research house Value Research’s CEO Dhirendra Kumar.
