It's time to 'stock' up for those with risk appetite

Poll jitters, rich valuations to blame for muted May for markets, say analysts

- PUNEET WADHWA

Pre-election jitters and expensive valuations are reasons why the equity markets are experiencing bouts of volatility this month, analysts said, as they advocate investors to navigate through this tricky period with utmost caution. They also urged those with an appetite for risk to buy stocks at the current levels from a long-term horizon.

The S&P BSE Sensex and the Nifty 50 have lost over 1.5 per cent each during this period. The cuts in the mid and smallcaps were sharper with both the indices on the BSE slipping 1.7 per cent and 2.9 per cent, respectively during this period, shows data.

The India Vix (volatility index), a measure of expected swings in the market over the next 30 days, rose for the ninth straight day on Tuesday to end at 17, the highest since January 30, 2023. This is the longest gaining streak for the index since the pandemic outbreak in March 2020. Interestingly, the index, also known as the fear gauge, had finished at a record closing low of 10.2 just on April 23.