Vijay Kedia Says Government-Backed Sectors Will Create Wealth

The markets concluded a volatile week at a record high on Friday, bouncing back from the losses experienced on the counting day. As Narendra Modi prepares to take his oath as prime minister, investor Vijay Kedia suggests that sectors receiving government support are likely to be wealth generators in the market.

"You look at the Prime Minister's speech and just focus on the sectors that he mentioned today. He spoke about EVs, clean energy, climate and infrastructure; just focus on these sectors. Just focus on where the government is focused and that's where you will make money," Kedia told NDTV Profit on Friday.

He said that if one is focused on small events or minor disturbances, then the investor will lose the golden opportunity.

Kedia also said the government has been focused on development and in the next few days, it will start moving in the same direction, which will only help boost investors faith in the government. On Tuesday, when the market had fallen, it was only due to the fear of an unstable government, but as the government showed signs of stability, the markets started to gain.

Being a long-term investor himself, he said, "Long-term investors should not focus on short-term volatility." His portfolio as a long-term investor is the same as that on the previous Friday, so the effect of Tuesday's drop was nullified.

Kedia pointed out that Monday's high happened due to the exit poll. The numbers that were released by multiple analysts made the market euphoric. But the dip on Tuesday was due to the short sale on Friday, he said.

The markets gain at such huge numbers due to short buying and short covering as investors panic, Kedia said. "Buyers can still wait but short sellers won't wait as they have to balance their position." This, according to him, is the normal functioning of the market and not a scam.

As the FPIs continue their selling, Kedia pointed out that they no longer have the same dominance to influence the market alone. "Domestic retailers and institutions are becoming strong."

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