Steel Your Nerves
The first phase of polling is behind us. The fate of 91 Lok Sabha seats is already sealed. The second phase comes up next week. Predictably, this is the most keenly fought election. It is a battle for survival.
While political parties pit themselves head to head against each other, the corporate world saw two major companies pit themselves against each other. INFY and TCS announced results on the same day. The results season began without much fanfare and this event too seemed to be tracked much less than usual.
The coming weeks will see elections and corporate results play out. And, when the corporate results season and election polling ends, the results season for parliament begins.
What really matters now is the guidance of companies. Messaging about the future should be closely watched. The election mandate maybe discounted very quickly and markets will move onto gazing at the crystal ball of future earnings growth.
For investors, elections always are a challenge to their nerves. But, the steely ones seem to be all set to ride out this phase.