Investors should go for judicious mix of defensives and cyclicals: Ajay Bodke

In a chat with ET Now, Ajay Bodke of Prabhudas Lilladher shares his views approaching the election results.

ET Now: With less than 10 days away for the election result, how are you advising your clients and how are you proposing the one should approach this event?

Ajay Bodke: The strong upsurge in the Indian markets led mainly by roughly $5.5 billion of inflows from the FIIs from 1st of January and around $5 billion of inflows in the fixed income market is a testament to the fact that people are expecting a decisive mandate. Most of the opinion polls are indicating the principal opposition led coalition to cross the magical halfway mark.

In case the mandate does turn out to be different, then we are clearly in a bout of strong volatility. Hence, as we go into the 16th of May, I would advise investors to trade on the side of caution. Wherever one sees a strong upsurge, one needs to look at booking profits and at the same time not overlooking the fact that a decisive mandate would in turn mean revival of investment cycle. It will be foremost on the agenda of the dispensation that comes to power and hence a judicious mix of defensives and cyclicals is what I would be advocating investors.