Amidst the post-election turbulence, Abakkus, the brainchild of renowned fund manager Sunil Singhania, has shared insights on the market outlook. Historically, elections trigger market fluctuations, but stability typically returns within one to six months post-event. Drawing from the past five elections since 1999, Indian equity markets have consistently yielded positive returns within six months, even amidst coalition governments and less favorable outcomes.

Abakkus' perspective anticipates forthcoming clarity in government formation and post-election narratives. Expecting choppy markets with volatile swings until then, the strategy advises caution, particularly in overvalued stocks and those buoyed solely by speculation. Abakkus underscores a steadfast commitment to fundamental-based investing, advocating for moderation in return expectations and discouraging momentum-driven strategies.

While acknowledging the unexpected election outcome, Abakkus remains optimistic, eyeing opportunities amidst market corrections. Despite recent downturns, economic indicators offer promise, with Q4 GDP exceeding 8% and robust GST collections in May. Additionally, the decline in crude oil prices to $77 per barrel is anticipated to bolster the Indian economy.

With a pledge to revisit strategies post-government formation, Abakkus underscores resilience in uncertain times and remains vigilant for prospective investments aligned with long-term growth prospects, leveraging market fluctuations to identify undervalued assets.